U.S. September CPI Shows Modest Inflationary Pressures
The U.S. Bureau of Labor Statistics released the September 2025 Consumer Price Index (CPI) on October 24. The index increased 0.3% on a seasonally adjusted basis. The all-items index has risen 3.0% over the last 12 months. This is an uptick from the 2.9% recorded in August.
Why this matters
Steady inflation trajectory
The 3.0% year-over-year increase indicates inflation remains above the Federal Reserve's 2% target. Price pressures persist in the economy.
Core inflation trends
The index excluding food and energy rose 0.2% in September and 3.0% over the past year. Underlying pressures are present in sectors like shelter and medical care.
Sector-specifics
Airline fares increased 2.7% in September. Medical care services rose 0.2%. Household furnishings rose 0.4%. Used cars and trucks declined 0.4%.
What to watch
Federal Reserve policy
Continued above-target inflation influences interest rate decisions.
Consumer spending
Rising prices in shelter and healthcare affect household budgets and discretionary spending capacity.
Input costs
Businesses in airlines and medical services face pressure to adjust pricing based on input costs.
Bond markets
Persistent inflation places upward pressure on yields. This affects borrowing costs across the economy.
