Annual inflation rose to 3 percent in September as a jump in gasoline and energy prices pushed price growth to its highest level since January.
The consumer price index (CPI) rose 0.3 percent last month and 3 percent over the 12-month span ending in September, according to data released Friday by the Bureau of Labor Statistics.
Economists expected inflation to hit 3.1 percent in September after months of prices rising steadily, due in part to Trump’s tariffs, with a monthly gain of 0.4 percent.
Annual inflation as measured by the CPI dropped from 3 percent in January to 2.4 percent in March, but spiked back up to 2.9 percent by August.
“The impact of tariffs was evident in the September data, though the pass-through to consumer prices remains uneven and gradual,” wrote Gregory Daco, chief economist at EY Parthenon, in an analysis.
“Apparel prices increased by the most in a year while new car prices posted their second largest gain in 2025 and food prices continued to rise after posting their highest gain since 2022 in August.”
In a Friday statement, White House press secretary Karoline Leavitt highlighted the inflation report coming in slightly lower than expectations, calling it “good news for American families.”
“Democrats choosing to keep the government closed will likely result in no October inflation report, which will leave businesses, markets, families, and the Federal Reserve in disarray.”
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