US inflation rises to 3% in September amid government shutdown; prices rose 0.3% MoM basis — Details here

The US Bureau of Labor Statistics' Consumer Price Index (CPI) released on 24 October 2025, noted that the US consumer inflation increased at a rate of 3% for the 12-month period ended September 2025, amid the government shutdown, according to the official filing.

Labor Statistics Bureau data showed that the CPI inflation increased to 3% in the 12-month period ending in September 2025, compared to a 2.9% increase in the 12-month period ending in August 2025.

According to an AFP report, the rise in inflation was less than the market's expectations. However, the increasing inflation is unlikely to dim the expectations of another interest rate cut by the United States Federal Reserve (Fed) policy meeting next week.

Increase in prices in US economy

The official data released also showed that prices, indicated by the CPI All Urban Consumers, rose 0.3% in September 2025, compared to their 0.4% rise in the previous month in August 2025.

“The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% on a seasonally adjusted basis in September, after rising 0.4% in August,” the Bureau of Labor Statistics data showed.

Shelter, airline fares, recreation, household furnishings and operations, and apparel were the indexes which witnessed an increase over the month of September 2025.

The inflation data helps the US Federal Reserve and economists analyse the financial health of the US economy. This comes at a time when all other official economic data has been stopped due to the US government shutdown.

The US government shutdown entered its 24th day on Friday, marking the second-longest standing shutdown in the United States.

Fed rate cut bets

The economists and policymakers are expecting the US Federal Reserve to cut its benchmark interest rates by another 25 basis points in the upcoming FOMC policy meeting next week, even though the September inflation data shows a rise, according to the report.

In its September policy meeting, the US Fed's FOMC committee decided to cut the interest rates by 25 basis points to the range of 4.00% to 4.15% compared to its earlier levels. The September rate cut move marked the first interest rate cut in the US economy since President Trump took charge of White House in January.

The agency report also cited CME Group data and said that the futures market suggests that there is a 99% chance that the Federal Reserve will cut the increased rates in the upcoming policy meeting outcome.

The US Labor Department data also suggested that the job growth in the economy came in at 22,000 in August 2025, according to the news report.