Overview
- The September Consumer Price Index, released after a shutdown delay, rose 0.3% on the month and 3.0% year over year, slightly above August’s 2.9% pace but below market forecasts.
- Grocery prices increased 0.3% from August and are about 2.7% higher than a year earlier, with notable annual jumps for coffee (about 19%) and beef and veal (about 15%).
- The White House said the result came in below expectations and credited the administration’s agenda, while also warning the ongoing shutdown will likely prevent an October inflation report.
- Fact-checkers rebutted the president’s repeated claims that grocery prices and inflation are down, and food economists cited tariffs and immigration enforcement as contributors to higher food costs.
- Economists said the softer-than-feared print keeps a Fed rate cut on the table even with inflation above the 2% target, as polls show slipping public approval of the president’s economic stewardship.