Inflation rose to its highest level since January with consumer prices increasing by 3% in September compared to one year prior, according to government data released and obtained by ABC News on Friday (October 24).
The new data was slightly higher than the 2.9% year-over-year increase reported in August. The rising prices in recent months have coincided with sweeping tariffs issued by President Donald Trump.
Beef prices increased by nearly 15% between September 2024 and September 2025, according to the newly released data, as Trump announced plans to import beef from Argentina in an effort to reduce U.S. prices, a move that has caused concern from some American farmers. Egg prices, which have long been a focal point of inflation concerns, dropped by nearly 5% in September and were reported to be 1% lower in September 2025 than September 2024.
Coffee, however, has surged by an estimated 19% year-over-year, according to the data, which was released more than a week later than initially planned due to the U.S. government shutdown. The latest rise in prices has coincided with a struggling economy, with inflation accelerating as hiring has slowed, creating the risk of “stagflation.”
Last month, the Federal Reserve cut its benchmark interest rate a quarter of a percentage point, choosing to cut its first interest rate in 2025 in hopes of reviving the labor market.
“It’s a challenging situation when our goals are in tension like this,” said Federal Reserve Chairman Jay Powell, before adding that the balance of risks had shifted toward greater concern over sluggish hiring, via ABC News.
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