US inflation has remained high for years, causing Fed officials to worry.

U.S. consumers are in the midst of the longest period of rising inflation in a century. Some people are starting to act as if it’s the new normal, alarming members of the Federal Reserve.

The September consumer price index announced on Wednesday rose 3.7% from the same month last year. The CPI currently has approximately 65 consecutive months (more than five years) of consecutive annual measurements above 2%, the widely accepted inflation target in the United States.

Years of high inflation have cast a cloud over how everyday Americans view the economy, potentially affecting everything from how they budget to how they vote in next month’s midterm elections. At the Fed, leaders are wondering whether consumer inflation expectations have become too entrenched to contain.

“They are starting to accept high inflation as just a fact,” Cleveland Fed President Beth Hammack said in a social media post last week. “That’s a concern.”

The current run of stubborn inflation is one of the most persistent in modern U.S. history.

This is the longest period of uninterrupted monthly CPI readings above 2% in the 21st century, according to a CNBC analysis of Bureau of Labor Statistics data. Longer periods have only occurred twice in the United States, dating back to the late 1940s.

Since inflation began to exceed 2% in early 2021, the average reading of the CPI has hovered around 4.5%. The last time the streak average was this high was the period that ended in the 1980s.

Consumers expect inflation to accelerate. The New York Fed’s consumer expectations survey released last week showed that the outlook for one-year inflation rose three-tenths of a point in September to 3.9%, the highest in more than three years.

One of central bankers’ main concerns is that businesses and consumers may begin to permanently adjust their behavior due to higher prices. That could have ripple effects throughout the economy.

Companies that anticipate rising costs can proactively raise prices for consumers. Workers who expect inflation to remain high will seek larger wage increases in advance of further shocks.

All of this could make inflation a self-fulfilling prophecy and make the monetary policy tools at the Fed’s disposal less effective at slowing price increases.

“In order for monetary policy to affect the economy in an effective and predictable way, it needs to entrench inflation expectations,” said economist Gary Richardson, a former Federal Reserve historian. “That must be the primary goal of any central bank.”

For now, Fed officials are closely monitoring whether and how consumers respond to inflation pressures.

Minneapolis Fed President Neel Kashkari said at an event last month that he had heard from union leaders that inflation was “worse” than a recession for their members. Mr. Kashkari said the conversation influenced his thinking about tradeoffs in the Fed’s so-called dual mandate, which seeks to stabilize prices and maximize employment.

Mr. Hammack told an audience at a conference of economists in Ohio this week that he does not accept the fact that long-term inflation expectations are pegged to “a given.” He warned that as inflation rises each month, there is a growing risk that “inflationism” will become entrenched.

Economists widely view interest rate hikes as the Fed’s main mechanism for slowing demand and, in turn, putting downward pressure on annual price increases. Federal funds futures traders expect the central bank to raise borrowing costs further in December and in 2027 after raising interest rates in September.

Diane Swonk, chief economist at consultancy KPMG, said higher interest rates could benefit consumers in the long run by reducing inflation. But Swonk said that in the short term, consumers could feel more pressure from higher borrowing costs.

“Inflation is like a cancer, and if you let it spread and it gets worse, it gets worse,” Swonk said. “Even if the treatment is painful, it’s better than metastasis.”

Cleveland Fed President said he has seen evidence through social media in the Hammack area that residents are making “choices” rather than “cutting prices.” For example, she said, you have to choose between paying for groceries or paying for essentials.

Consumers are lamenting the cumulative price increases they see in their daily lives after years of high inflation. Adding to their predicament is the fact that year-on-year inflation has been faster than wage growth in recent months, meaning average consumers are losing purchasing power.

A closely tracked University of Michigan consumer sentiment survey earlier this year fell to its lowest level ever. The percentage of respondents who cited high prices as the reason for the deterioration of their personal finances was the highest, rising to over 50% for the first time in history in 2026.

Michigan research director Joan Hsu said high prices are “dominating consumer thinking.” “They still consider that an unacceptable reality.”

Compared to Democrats, consumer sentiment has deteriorated more sharply this year among Republicans and independents. The question now is whether voters angry about the rising cost of living will shift control of Washington away from Republicans and President Donald Trump in the midterm elections.

Despite this bleak outlook, economists argue that ordinary Americans should not expect prices to fall from current levels. Deflation (annual price growth below 0%) can send a nation’s economy into a downward spiral.

Rather, their hope should be for 12-month inflation growth to settle to a level below the pace of wage growth. If that continues long enough, rising wages and increased purchasing power will make shoppers more than comfortable with today’s prices.

Olenna Nix, an analyst and local lawmaker from Long Island, New York, is among the consumers tightening their wallets in the face of high prices. Nix said she has especially noticed that prices in the produce section of grocery stores and on vacation flights have risen sharply in recent years.

In response, the 34-year-old said she has cut back on buying meals from restaurants and fast food chains. Her group of friends forego leisure activities such as bowling, choosing instead to spend the night at someone’s house for less.

“Frustrating is an understatement,” Nix said. “I feel like I’m stuck.”