US Consumer CPI Inflation Rises 0.3% in September, Below Expectations

But inventories were drawn down in the second quarter, and retailers like Walmart said they are seeing costs rise as they restock at post-tariff price levels, something they expect to continue throughout the year. Economists expect prices to steadily rise through 2026. The US central bank tracks the PCE price index for its 2% inflation target. The Fed is expected to lower its benchmark interest rate by another 25 basis points next Wednesday, to the range of 3.75% to 4.00%.