In the September 2025 CPI report, the Consumer Price Index for All Urban Consumers rose 0.3% month-over-month and 3.0% year-over-year, reflecting sustained inflationary pressures. Major drivers included a 4.1% increase in gasoline prices and a 0.3% rise in food at home, while decreases were noted in motor vehicle insurance and used car prices. The core inflation metric (excluding food and energy) also increased by 3.0% annually. Given these trends, the Federal Reserve's decision to lower the policy interest rate by 25 basis points indicates a shift toward addressing downside risks in employment amid persistent inflation. Despite recent economic growth signals, Fed Chair Powell emphasized the need for caution due to ongoing inflation risks, particularly from tariffs. The balance between stimulating employment and controlling inflation remains a complex challenge for the Fed’s monetary policy moving forward.