Inflation edged up 0.3% in September, driven largely by higher gasoline prices
Annual inflation rate now stands at 3.0%, up slightly from August’s 2.9%
Shelter, recreation, and apparel costs also rose, while car insurance and used car prices declined
U.S. consumer prices continued to climb in September, with the Consumer Price Index (CPI) rising 0.3% on a seasonally adjusted basis, according to the delayed report from the Bureau of Labor Statistics (BLS).
The latest figures show inflation running at a 3.0% annual rate, signaling that while price pressures remain moderate, they continue to affect household budgets, particularly through energy and housing costs.
The sharpest price jump came at the gas pump. The gasoline index surged 4.1%, helping push the overall energy index up 1.5% for the month. Over the past year, however, gasoline prices are still down 0.5%, reflecting earlier declines in 2025. So far in October, gasoline prices have fallen significantly.
Electricity prices fell 0.5% in September, while natural gas slipped 1.2%.
On a yearly basis, the energy index is up 2.8%, driven mainly by higher electricity (+5.1%) and natural gas (+11.7%) costs.
Food inflation remains mild
Food prices rose 0.2% in September, following a 0.5% increase in August. Grocery prices (food at home) were up 0.3%, led by cereals, bakery products, and nonalcoholic beverages—all up 0.7%. Meat, poultry, fish, and eggs rose 0.3%, while dairy products dipped 0.5%. Restaurant prices (food away from home) increased just 0.1%.
Over the past year, the food index is up 3.1%, with grocery costs up 2.7% and dining out costs up 3.7%.
Excluding food and energy, the so-called core CPI rose 0.2% in September, easing from 0.3% in the prior two months. The core inflation rate now stands at 3.0% year-over-year.
Shelter costs – one of the biggest components of the index – rose 0.2%, marking the smallest increase in owners’ equivalent rent since early 2021. Prices also increased for airline fares (+2.7%), recreation (+0.4%), household furnishings (+0.4%), and apparel (+0.7%).
At the same time, consumers caught a break in a few areas: the cost of used cars and trucks declined 0.4%, motor vehicle insurance fell 0.4%, and communication services dropped 0.2%.