The window display of a store, New York, July 15, 2025. SPENCER PLATT / GETTY IMAGES VIA AFP
The data on US inflation for September that was published on Friday, October 24, shows that the annual price increase hit 3%, compared to 2.9% the previous month, and now seems likely to persist. While this level is far from the post-pandemic peaks under President Joe Biden, it is the highest since January and high enough to become a political concern for the White House.
This data, initially scheduled for release on October 16, was delayed due to the ongoing US government shutdown – a near-total closure of the federal administration except for essential services – following a budget impasse between Democrats and Republicans. The Bureau of Labor Statistics, responsible for producing these numbers, shut down and, for example, did not publish the highly anticipated September employment figures. Ultimately, some staff members were recalled to ensure the inflation data would be released, since these figures are considered a priority as they are used to adjust Social Security benefit levels.
Prices rose by 0.3% in September compared with the previous month, after a 0.4% increase in August. Core inflation, which excludes the more volatile food and energy categories, also stood at 3% year-on-year. This was slightly below the 3.1% forecast by most economists, which led markets to rise modestly on Friday morning; Wall Street anticipated that the US Federal Reserve (Fed), which has been operating without employment data, would cut rates again to support the economy, despite the risk of inflation.
