In September 2025, the U.S. Consumer Price Index for Urban Consumers (CPI-U) rose 3.0% year-on-year, up from 2.9% in August, marking the sixth consecutive month of widening annual inflation. The index increased 0.3% month-over-month, indicating persistent short-term inflationary pressure. Despite ongoing Federal Reserve rate hikes aimed at curbing inflation, prices continue to rise steadily, reflecting unresolved cost pressures in certain sectors of the economy. Over the past six months, CPI year-on-year growth has risen progressively—from 2.3% in April to 3.0% in September—signaling accumulating inflationary pressures. Notably, both August and September saw inflation rates in a high range, with positive month-over-month gains, suggesting no significant relief in consumer price pressures. Price movements in core goods and services, particularly housing, healthcare, and transportation, remain key drivers of overall inflation. Analysts note that while inflation has not yet shown signs of peaking, markets are beginning to assess potential shifts in future Fed policy. If inflation fails to decelerate meaningfully in coming months, expectations of prolonged high interest rates may strengthen. Conversely, signs of economic weakness could prompt policymakers to reassess the pace of tightening. Overall, the 3.0% year-on-year increase underscores that inflation remains elevated, and controlling it continues to pose significant challenges.