Recent U.S. CPI prints show headline inflation easing to 3.2% year-over-year in September 2026 from 3.4% in August, with core at 2.2%, driven by slower shelter costs and lower energy prices, though readings remain well above the Fed’s 2% target. The Federal Reserve raised the federal funds rate to the 3.75%-4% range in September and signaled another quarter-point hike by year-end, citing sticky services inflation and solid growth. Market-implied odds reflect expectations that 2026 peaks will stay below prior highs around 4.2% from May, with upcoming October CPI and FOMC decisions as key swing factors for year-end resolution.