US Inflation Holds at 3% in September as Fed Eyes Another Rate Cut

WASHINGTON: The US year-over-year inflation rate rose to 3.0% in September, matching January’s level and slightly below the expected 3.1%. Core CPI, excluding food and energy, also increased 3% year-on-year and 0.2% monthly, indicating persistent but contained price pressures. Gas prices jumped 4.1% month-on-month, while food rose 3.1% annually, with beef prices up 14.7% year-over-year.

US Inflation Holds

The data release was delayed due to the ongoing government shutdown—the second-longest in US history—which has disrupted key federal operations, including jobs reporting. Economists said inflation showed “slight stubbornness” driven by goods, while services inflation showed signs of easing. The Federal Reserve, set to meet on October 28-29, is expected to deliver another 25-basis-point rate cut, focusing on supporting the labor market amid economic uncertainty and tariffs. Median one-year inflation expectations rose to 3.4% in September, their third consecutive monthly increase.

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