After its release was delayed due to the government shutdown, the Bureau of Labor Statistics released its monthly consumer inflation report showing the price of goods and services increased 3% for the 12-month period ending in September.
The 3% increase marked the highest inflation rate in the U.S. since January 2025. The rate is up from 2.9% in August and 2.7% in July.
How much of a role President Donald Trump's tariff policies have played in inflation remains unclear. The inflation rate on items other than food and energy increased to 3% for the year ending in September.
Last week, the Budget Lab at Yale University said President Trump's tariffs would raise prices by almost 1.3% in the short run, costing the typical middle-class household more than $1,800 per year. Those figures have fluctuated as President Trump continues shifting tariff rates on various nations.
The consumer price index weighs the costs of goods based on their importance; items like food, shelter, and energy tend to be weighted more heavily.
Over the last decade, prices have generally increased at a rate of 3.5% per year. Over the last 20 years, consumer inflation has typically risen by 3.3% annually. The Federal Reserve, however, has aimed to keep annual inflation at approximately 2%.
