Why it matters
- The U.S. consumer price index rose 0.6% in September after a 0.4% gain in August, and annual inflation rose to 3.7% from 3.4%, the Bureau of Labor Statistics said Wednesday, Oct. 14.
- Gasoline rose 9.1% in the month and accounted for over half of the increase. Core prices, which exclude food and energy, rose 0.3% for a second month, and the annual core rate rose to 2.6% from 2.4%.
- Stock futures turned lower and the 10-year Treasury yield rose to about 5.30% after the 8:30 a.m. ET release, according to Yahoo Finance data.
U.S. consumer prices rose 0.6% in September, the Bureau of Labor Statistics said Wednesday, Oct. 14, pushing annual inflation up to 3.7% from 3.4% in August as gasoline prices jumped 9.1%. The consumer price index rose 0.4% in August.
Core prices, which exclude food and energy, rose 0.3%, the same as in August. Over 12 months, core inflation rose to 2.6% from 2.4%, the BLS said.
How did September CPI compare with forecasts?
Annual inflation and core prices came in above forecasts. The 0.6% monthly rise was in line with forecasts, but the 3.7% annual rate topped expectations of 3.6%, according to Trading Economics. Economists had expected core prices to rise 0.2% in the month and 2.5% from a year earlier, Trading Economics said.
| Measure | September | August | Forecast* |
|---|---|---|---|
| CPI, monthly | 0.6% | 0.4% | 0.6% |
| CPI, annual | 3.7% | 3.4% | 3.6% |
| Core CPI, monthly | 0.3% | 0.3% | 0.2% |
| Core CPI, annual | 2.6% | 2.4% | 2.5% |
Source: Bureau of Labor Statistics; *forecasts as reported by Trading Economics. Monthly changes are seasonally adjusted.
What drove consumer prices higher in September?
Energy. The energy index rose 5.2% in September after a 2.1% increase in August, and gasoline accounted for over half of the monthly rise in all items, the BLS said.
- Gasoline: up 9.1% in the month and 34.2% from a year earlier.
- Energy: up 5.2% in the month and 20.4% over 12 months.
- Shelter: up 0.4% after 0.3% in August, and 3.2% from a year earlier.
- Food: unchanged in the month. Food at home fell 0.1% and food away from home rose 0.2%. Food prices were up 2.5% from a year earlier.
For the latest on crude, see our report on Brent and WTI oil prices.
How did markets react?
Stock futures turned lower and Treasury yields rose after the 8:30 a.m. ET release, according to Yahoo Finance data. At about 8:44 a.m. ET, S&P 500 futures were down about 0.4% and Nasdaq 100 futures were down about 0.7%, after both had traded higher just before the report. Dow futures were down about 0.3%.
The 10-year Treasury yield rose to about 5.30% at 8:39 a.m. ET from about 5.19% just before the release and 5.22% at Tuesday's close, Yahoo Finance data show.
What does the CPI report mean for the Fed?
The report comes two weeks before the Federal Reserve's next policy meeting on Oct. 27–28, according to the Fed's meeting calendar. On Sept. 16, the Fed raised its benchmark federal funds rate by a quarter percentage point to a range of 3.75% to 4%, and its statement said "inflation remains elevated."
Related coverage: our story on the September U.S. jobs report, the latest Tokyo core inflation reading and Bank of America's third-quarter results, released Wednesday morning. More in our economy news section.
Sources
- U.S. Bureau of Labor Statistics, Consumer Price Index – September 2026 (Oct. 14, 2026)
- Trading Economics, United States Inflation Rate
- Federal Reserve, Meeting calendars and information
- Federal Reserve, Federal Reserve issues FOMC statement (Sept. 16, 2026)
- Yahoo Finance, chart data for S&P 500 futures (ES=F), Nasdaq 100 futures (NQ=F), Dow futures (YM=F) and 10-year Treasury yield (^TNX)
