Washington, October 25, 2025: The United States annual inflation rate rose to 3.0 percent in September, up slightly from 2.9 percent in August, according to data released by the Bureau of Labor Statistics (BLS). On a monthly basis, the Consumer Price Index (CPI) increased 0.3 percent, reflecting a steady rise in consumer prices across several key categories. Core inflation, which excludes the volatile food and energy components, also registered a 3.0 percent year-over-year increase, with a 0.2 percent monthly gain.

These figures indicate that inflation remains above the long-term target of 2.0 percent, although price growth has slowed compared to levels recorded in 2022 and early 2023. Energy prices were the main driver of the monthly increase. The gasoline index surged 4.1 percent in September, accounting for a significant portion of the overall rise. The broader energy index climbed 1.5 percent, while electricity and natural gas prices fell 0.5 percent and 1.2 percent respectively.
On a 12-month basis, the energy index advanced 2.8 percent, supported by seasonal fluctuations in fuel demand. Food prices rose 0.2 percent in September and 3.1 percent from a year earlier. The food-at-home category, which tracks grocery prices, increased 0.3 percent, while the food-away-from-home index, representing restaurant and takeout costs, was up 0.2 percent. Housing-related costs, which represent more than one-third of the CPI basket, showed signs of cooling.
Energy prices drive monthly rise as gasoline surges
The shelter index rose 0.2 percent in September, while owners’ equivalent rent, a key housing cost measure, edged up 0.1 percent the smallest monthly increase since January 2021. On an annual basis, shelter costs were 3.6 percent higher. Other notable monthly increases were recorded in airline fares, household furnishings, and apparel, while used vehicle prices and motor vehicle insurance declined.
The index for all items reached 324.800 (1982–84=100) in September. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), used to calculate federal benefit adjustments, rose 2.9 percent over the past year. Based on this measure, Social Security and federal retirement payments will see a 2.8 percent cost-of-living adjustment (COLA) in 2026. The release of the CPI report had been delayed by the ongoing federal government shutdown, which began October 1.
Energy index offsets declines in electricity and gas
The BLS confirmed that data collection for September was completed before the shutdown, ensuring the accuracy of the figures used in federal and financial analyses. The September data mark the highest annual inflation rate since January, underscoring persistent price pressures in specific categories despite easing in others. Gasoline’s sharp increase contributed significantly to the monthly gain, while moderation in rent growth helped offset some of the upward pressure.
The CPI report provides a comprehensive snapshot of price trends across the U.S. economy, reflecting movements in energy, housing, and consumer goods. The figures will be used by government agencies, businesses, and households to gauge purchasing power and cost-of-living trends heading into the final quarter of 2025. The data also serve as a key benchmark for wage negotiations, contract adjustments, and budget planning across both public and private sectors, highlighting how inflation continues to influence everyday economic decisions nationwide. – By Content Syndication Services.
