Key takeaways 

• CPI rose 0.3% month over month and 3.0% year over year; core increased 0.2% on the month and 3.0% on the year.
• Shelter inflation cooled: owners’ equivalent rent posted its smallest monthly gain since early 2021; rent of primary residence rose 0.2%, and lodging away from home advanced 1.3%.
• Health coverage costs are reasserting themselves: the CPI health insurance index rose 0.3% month over month and 4.2% year over year. Separate KFF data show average employer family premiums up 6% in 2025 to $26,993, with workers contributing about $6,850.
• Food-at-home inflation looks calmer than earlier in the year, up 2.7% annually; the broader food index is up 3.1%.

September CPI rose 0.3% month over month and 3.0% year over year. Shelter cooled and grocery inflation stayed in the low single digits, while gasoline lifted the monthly reading. Health insurance costs are rising. Overall, disinflation is progressing even as a few categories remain sticky.

Inflation cooled where households have been feeling it the most: shelter. September’s Consumer Price Index (CPI) from the Bureau of Labor Statistics (BLS) showed a 0.3% monthly gain and a 3.0% annual pace, both consistent with a slow return toward the Federal Reserve’s target range.¹ Core CPI, which strips out food and energy, rose 0.2% on the month and 3.0% on the year — further evidence that disinflation is moving forward.²

Shelter takes a breather

Housing has been the heavyweight in consumer budgets, but September offered some relief. Owners’ equivalent rent rose just 0.1%, the smallest one-month increase since January 2021, while rent of primary residence increased 0.2%.³ Lodging away from home increased 1.3%. Taken together, the shelter components continue to show gradual cooling, important given the category’s outsized weight in the index.

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Energy up, groceries steady-ish

Energy did much of the lifting on the month. Gasoline prices jumped 4.1% in September, even as electricity and natural gas were comparatively subdued.⁴ Despite the September jump, October pump prices have drifted lower: The national average sits near $3.07 a gallon as of October 23, down from roughly $3.17 a month earlier as demand stays flat.⁵

At the grocery store, price gains looked steadier than earlier this year. Food at home is up 2.7% year over year, and the broader food index is up 3.1%.⁶ Staples have remained fairly stable since a year earlier, with milk increasing only 2.1%, bread up 1.8%, and eggs down 1.3%. However, beef remains elevated, so sales cycles and retailer promotions will likely matter more than usual heading into the holidays.

Healthcare costs are higher

Health insurance increased 0.3% in September, and 4.2% compared to a year earlier.⁷ Beyond the CPI’s healthcare components, employer coverage costs are rising. The KFF Employer Health Benefits Survey reports average family premiums up 6% in 2025 to $26,993, with workers paying roughly $6,850 of that total.⁸

What it means for household finances

Open enrollment math. Comparing total annual cost — not just the monthly premium — can keep healthcare spending in check. Health savings accounts paired with high-deductible plans can work well and provide a way to save pre-tax dollars.

Budget for “sticky” categories. Even as rent inflation cools, shelter remains a large share of spending. Lease renewals may still land above pre-pandemic norms, so building extra room into housing budgets can help avoid mid-year surprises. Vehicle insurance and certain services remain firm in many regions — shopping coverage and adjusting deductibles can offset some of those increases without sacrificing necessary protection.

Holiday basket watch. With food-at-home inflation running in the low single digits, timing matters. Retailers typically front-load promotions on proteins and baking staples — planning menus around advertised specials and store-brand alternatives can trim the bill even when headline food inflation looks tame.

Cash strategy as rates drift. If slowing inflation keeps the rate-cut cycle in play, deposit yields and short-term CD rates tend to decline with a lag. Households can keep emergency cash liquid to be prepared for unexpected expenses.

Read more: COLA increase 2026: Social Security payments to rise 2.8%

Scheduling update

Because of the federal shutdown, BLS published the September report nine days later than planned, on October 24, to support the Social Security Administration’s COLA timeline. Officials noted that October CPI could face some disruption if data collection remains constrained.