U.S. consumer prices accelerated in September, driven largely by a sharp increase in gasoline costs that lifted the annual inflation rate to 3.7%, up from 3.4% in August, according to the Bureau of Labor Statistics. The latest data indicate that both headline and core measures of inflation moved higher, suggesting that pricing pressures were not limited to the energy complex.
On a month-over-month basis, the Consumer Price Index rose a seasonally adjusted 0.6% in September, following a 0.4% increase in August. The faster pace of overall price gains was closely tied to energy, and in particular to gasoline, which recorded a notable jump during the period.
Gasoline prices climbed 9.1% in September and accounted for more than half of the total monthly CPI increase. Broader energy costs also moved higher, with overall energy prices up 5.2% for the month. This represented a meaningful acceleration from August’s 2.1% gain. On a year-over-year basis, energy prices were 20.4% higher than a year earlier, underscoring the scale of the rebound in this category.
Excluding the more volatile food and energy components, core CPI rose 0.3% in September, matching the increase recorded in August. Annual core inflation edged higher to 2.6%, compared with 2.4% in the prior month. The pickup in the core measure points to broader inflation pressures beyond energy, with several key service and goods categories contributing to the increase.
Shelter costs, a substantial component of the CPI basket, rose 0.4% in September after a 0.3% gain in August. The continued rise in shelter indicates that housing-related expenses remain a source of upward pressure on consumer prices. Other categories that posted monthly increases included recreation, used cars and trucks, education, airline fares, medical care, and apparel, reflecting a spread of price gains across both discretionary and essential spending areas.
Food prices were flat overall in September. Within that category, grocery prices declined 0.1%, which helped offset a 0.2% increase in the cost of food away from home. Despite the lack of change on a monthly basis, food prices were still 2.5% higher than a year earlier, indicating that consumers continue to face elevated food costs relative to last year even as monthly increases have moderated.
For commercial real estate market participants, the current inflation profile is characterized by higher energy and shelter costs alongside modest but persistent increases in core categories. These dynamics frame an environment in which operating expenses tied to utilities, transportation, and occupancy remain in focus for budgeting, underwriting, and asset management decisions.
