What could happen to credit card rates now that inflation is holding steady?

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September 11, 2026 / 10:19 AM EDT / CBS News

Borrowers with revolving debt have been waiting for months — and in some cases years — on end to get a meaningful break from this expensive credit card environment. But with average credit card APRs still hovering near record-high levels of over 22%, carrying a credit card balance remains costly — and the latest inflation data may not be so welcome for the borrowers who have been hoping rate relief is just around the corner.

The Consumer Price Index (CPI) rose 3.4% annually in August, according to the latest report, matching July's pace but coming in slightly above the 3.3% economists had expected. Core inflation, which strips out volatile food and energy costs, eased slightly on an annual basis, but accelerated from July on a monthly basis.

That combination matters because the Federal Reserve is set to make its next interest rate decision on September 16, and inflation remains well above the central bank's 2% target. So, with the Fed's decision on the horizon, credit card users may want to…

Original source: https://www.cbsnews.com/moneywatch/