Overview
- The Bureau of Labor Statistics reported on Wednesday that the Consumer Price Index rose 0.6% for September and 3.7% from a year earlier.
- Gasoline was the largest single driver, with pump prices jumping about 9.1% for the month and accounting for roughly half of September’s headline increase.
- Core CPI, which strips out food and energy, firmed to a 0.3% monthly gain and 2.6% year-over-year, signaling that price pressures have broadened beyond fuel costs.
- Financial markets reacted quickly as Treasury yields climbed and futures traders raised the odds of another Fed rate hike at the Oct. 27–28 meeting, making borrowing more expensive for households and businesses.
- The report is the last major inflation read before the Nov. 3 midterms and will factor into the Social Security 2027 COLA calculation while economists wait for upcoming PPI and PCE data to judge whether the energy shock is passing through to the wider economy.