A person pumping gas into a vehicle and President Donald Trump.

By Chris Spiker From Daily Voice

Higher gas prices fueled inflation in September as rising costs, strained family budgets, and the federal government shutdown plague the economy, according to new federal data.

The Consumer Price Index (CPI) rose 0.3% in September and inflation reached a yearly rate of 3.0%, according to Bureau of Labor Statistics data released on Friday, Oct. 24. That's slightly lower than the 0.4% monthly increase and 3.1% annual inflation forecasted by Dow Jones economists, CNBC reported.

The 3.0% inflation rate remains well above the Federal Reserve's 2.0% goal. The last time that inflation was below that benchmark was February 2021.

Gasoline prices jumped 4.1% in September, accounting for most of the overall increase. The broader energy index climbed 1.5%, while food prices rose 0.2%. 

Core inflation, which excludes volatile food and energy prices, climbed 0.2% in September and 3.0% over 12 months. Those numbers were also barely behind the Dow Jones estimates of 0.3% and 3.1%.

Electricity prices rose 5.1%, while natural gas surged 11.7% compared to September 2024. Food-at-home prices increased 2.7% annually, with meats, poultry, fish, and eggs jumping 5.2%.

Since September 2024, energy costs have risen 2.8%, food prices are up 3.1%, and core inflation has also increased 3.0%.

"Indexes that increased over the month include shelter, airline fares, recreation, household furnishings and operations, and apparel," the BLS said. "The indexes for motor vehicle insurance, used cars and trucks, and communication were among the few major indexes that decreased in September."

The CPI report was originally scheduled for release on Wednesday, Oct. 15, but was delayed due to the ongoing federal shutdown, which is now the second-longest in US history. The BLS called back its staff to complete the report because CPI data determines Social Security cost-of-living adjustments.

This will be the last major economic reading before the Fed's policy meeting on Wednesday, Oct. 29. Markets widely expect the Fed to approve another quarter-point interest rate cut.

The inflation report is the only major federal economic release available during the shutdown, which has already frozen jobs numbers and delayed state assistance payments. 

"Because we haven't gotten any government data in the recent past, I think all of the market's focus and all of the market's attention is going to be directed onto this one report," SMBC Nikko Securities senior US economist Troy Ludtka told CNBC before the release. "This is going to be the report to end all reports."

The lingering government shutdown is already causing pain and sparking fears for many low-income families across the Northeast. Pennsylvania halted new Supplemental Nutrition Assistance Program (SNAP) payments on Thursday, Oct. 16, while many other states are bracing for a widespread benefits pause if the shutdown continues into November.

The CPI data comes hours after President Donald Trump ended trade talks with the Canadian government again, his latest move in his rapidly changing global trade policies. Trump accused Canada of interfering with a Supreme Court case that challenges his authority to impose many of his widespread tariffs.

Trump posted on his social media platform Truth Social after the province of Ontario began running a TV advertisement in the US featuring a speech from former President Ronald Reagan.

"The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs," Trump wrote. "The ad was for $75,000,000. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts. TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A."

Earlier in October, Goldman Sachs economists estimated that Americans are paying for 55% of the tariffs' impact. Higher prices on imported goods and raw materials have driven up costs for many US families.

Investors have been unable to see a clearer picture of the nation's weakening labor market during the shutdown. With federal data paused, the last major release shows that private employers cut 32,000 jobs in September, which was the sharpest drop reported by ADP since March 2023.

The shutdown comes as Republicans control the White House and both chambers of Congress.

Senate Democrats have opposed a House-passed stopgap bill and are pushing for extending Affordable Care Act subsidies, along with seeking to reverse Medicaid cuts in the GOP-passed spending plan previously called the "One Big Beautiful Bill." Republicans argue that the federal government should be reopened before starting negotiations.

The last government shutdown was the longest in US history, spanning 35 days during Trump's first term in December 2018 and January 2019.