September CPI report reveals inflation rate at 3.0%, falling short of expectations.

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Oct 24 2025

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Source: CNBC

Inflation Data Overview: The consumer price index (CPI) rose by 0.3% in September, resulting in an annual inflation rate of 3%, which was lower than economists' expectations of 0.4% and 3.1%. Core CPI, excluding food and energy, also showed a 0.2% monthly gain, maintaining an annual rate of 3%.
Key Contributors to Inflation: A significant 4.1% increase in gasoline prices was the main driver of the inflation report, while food prices rose by 0.2%. Notably, prices for meat, poultry, fish, and eggs surged by 5.2% over the past year.
Federal Reserve Implications: The CPI report is crucial for the Federal Reserve's upcoming interest rate decision, with markets anticipating a likely rate cut. The Fed aims for a 2% inflation target, which has not been met since February 2021.
Economic Concerns: Despite the inflation data, there are concerns about potential impacts from tariffs and a slowdown in hiring, which could affect future economic stability. The Fed remains cautious about the pace of rate cuts amid these mixed signals.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.