September’s core inflation rate provided a bright spot to the monthly Consumer Price Index (CPI) report released by the U.S. Bureau of Labor Statistics (BLS) on Wednesday.
Core inflation, which excludes volatile energy and food products, increased a seasonally-adjusted 0.3% in September, matching August’s month-to-month rise, the BLS reports. The 12-month core inflation of 2.6% in September was higher than August’s 2.4% 12-month rise – but, that was the lowest monthly year-to-year increase in five and a half years.
The last month that annual core inflation was as low as it was in August was March of 2021, former President Joe Biden’s second full month in office, when it was 1.6%. The next month, it jumped to 3.0%, ending a 12-month streak under 2.0%. It has not fallen below 2.0% - the Federal Reserve’s target rate – in any month since.
September’s all-items index increased 0.6% from the previous month’s 0.4% growth and 3.7% from September of 2025. In August, consumer prices rose 0.4% over the month and 3.4% from a year earlier. Monthly growth matched analysts’ expectations, but the annual increase was slightly higher.
The index for food was unchanged in September, as a 0.1% drop in the cost of food at home offset a 0.2% increase in the price of food away from home. In all, food prices were 2.5% higher than a year earlier.
The shelter index rose 0.4% in September and 3.2% from a year earlier. In August, the food index increased 0.3%.
The index for all energy increased 5.2% over the month after rising 2.1% in August. Compared to September of 2025, energy prices were 20.4% higher.
The gasoline index was up 9.1% in September, accounting for more than half the monthly all-items increase. Compared to a year earlier, gasoline prices were 34.2% higher. In August, the gasoline index posted a 3.9% monthly rise.
