October 24, 2025
There’s no question. Inflation is going up.
It’s a little late, and yes the government is still shutdown but the bureau of labor statistics reported today – inflation was 3% higher in September of 2025 than it was in September of 2024. It was also up point three percent more in September of 2025 than it was in august of 2025.
Let’s be clear – inflation is going in the wrong direction. It’s going up not down. Those are the facts no matter what anyone tells you. The federal reserve wants inflation to be at 2%. Again – in September it reached 3%.
So now that we have that straight let’s talk about what sectors are seeing these price increases….well – it’s happening in all the thigs you use and need every day. Overall — food is up 3.1% year over year and it’s up just slightly between August and September (0.2%) of this year. Energy is up. Especially electricity which is up 5.1% since last year (5.1% yoy/-1.2% mom) and natural gas which is up 11.7% year over year (11.7% yoy/-1.2% mom). And yet again housing is up…the rate of price increases for shelter is up 3.6% (3.6%/yoy/0.2% mom) since last year. We all need food, shelter and energy every single day. Those aren’t luxuries. Those are necessities. That’s why you’re feeling like your budgets are being squeezed.
Since I just talked about the government shutdown, it’s worth noting the reason why it’s shutdown is because of healthcare costs. And according to this report – those are up – a lot. And the numbers I’m about to share with you do not yet fully take into account the brunt of the cost of healthcare that we are all going to see during open enrollment on November 1st. According to the CPI report – in September of 2025, medical care services were up 3.9% when compared to September of 2024 (3.9%you/0.2% mom). And if you have to go to the hospital – those costs are up 5.8% year over year. (5.8%yoy/0.8%mom). The report found health insurance in September of 2025 was up 4.2% in September of 2025 compared to September of 2024 (4.2%yoy/0.3%mom).
Now – I mentioned that this report was late because of the government shutdown. The Trump administration decided that this report was important enough to release. And yes – inflation is going up, but this report was not as bad as economists were expecting. That’s why you’re seeing a strong stock market today. But the Trump administration also chose not to release the jobs report. That was supposed to be released the first Friday in October. And August’s job report was not great. Remember when I reported that’s the report that found a staggering slow down in job creation (22,000 jobs) and an increase in unemployment (4.3%). Of course both of those reports are very important to the decision that the federal reserve will make next week about interest rates.
Read the CPI report here.
