Inflation inched back up to 3% in September, according to a belated Consumer Price Index report released during the government shutdown. The Bureau of Labor Statistics data shows gasoline and groceries are the main factors driving the increase.
The 3% year-over-year rate marks the highest inflation level since January, though the monthly increase shows less of a bump in consumer prices compared to August, CBS News reported.
"We see some progress on a month-over-month basis, but we still have, I think, elevated prices. And I think that's the ultimate bottom line that most Americans associate with inflation," Mark Hamrick said.
Coffee prices have surged nearly 19% in September amid ongoing climate change, supply chain issues, and tariffs.
Fabio Caro, owner of Macondo Coffee Roasters in Miami, exclusively serves Colombian coffee at his shops. His contract with his supplier recently expired, creating pricing challenges.
"I have been shopping around, trying to get another provider, or get a quote from the same provider. And I already see price per pound over two dollars," Caro said.
Some consumers are finding ways to minimize the impact of rising coffee prices. Taeya Meier has changed her habits to save money.
"I actually just got a Breville espresso machine," Meier said. "It is supposedly cheaper in the long run."
The spice industry is also bracing for price increases. Most spices used in the U.S., including the Maryland-manufactured Old Bay seasoning, are largely sourced from other countries.
Spice giant McCormick & Company has indicated it wants to maintain stable prices as long as possible.
"Consumer price hikes are certainly a lagging indicator. We are expecting to start to see more price increases by the end of the year across the industry," Laura Shumow, Executive Director of the American Spice Trade Association, said.
The CPI report's release during the government shutdown was necessary to allow the Social Security Administration to meet statutory deadlines and set the cost-of-living adjustment for 2026. Starting in January, beneficiaries will see a 2.8% increase, averaging $56 more per month.
Friday's data boosted investor confidence that the Federal Reserve will cut rates at its meeting next week.
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