Economists Warn: U.S. Inflation in September Worst in 16 Months

A delayed inflation report is expected to deliver sobering data about the direction of U.S. prices, with economists forecasting that the Consumer Price Index (CPI) in September rose at its fastest pace in 16 months, Aimee Picchi reported for CBS News.

The CPI measures price changes in a basket of goods and services typically purchased by consumers.

CPI last month is projected to have risen 3.1% on an annual basis, which would be the highest since the inflation gauge hit 3.3% in May 2024, according to economists polled by FactSet.

The CPI measures price changes in a basket of goods and services typically purchased by consumers.

The Bureau of Labor Statistics (BLS) is scheduled to release the September CPI report on Friday at 8:30 a.m. Eastern Time—nine days later than originally planned due to the U.S. government shutdown.

Most federal economic data releases have been suspended during the stalemate.

The Department of Labor is making an exception for the September CPI data because the inflation rate is needed to determine the Social Security Administration’s annual cost-of-living adjustment for beneficiaries, which is also scheduled to be announced on Friday.

Inflation has crept higher this year, moving farther away from the Federal Reserve’s 2% annual target, partly due to the Trump administration’s wide-ranging tariffs, according to economists.

U.S. companies that import goods from other nations are responsible for paying the tariffs, and they are passing on as much as 55% of those import taxes to consumers in the form of higher prices, according to a Goldman Sachs analysis.