US inflation ticked up in September but came in slightly lower than expected, official data showed Friday, likely keeping the Federal Reserve on course to lower interest rates again next week to help shore up a cooling labor market.
The Bureau of Labor Statistics data, which was delayed by the ongoing shutdown of the US government, showed consumer prices rising 3% from the same time last year, the fastest rate since January. The White House said Friday that the shutdown will “likely” mean no inflation report is issued in October.
The numbers are unlikely to deter the Fed from its expected path of cutting borrowing rates further when it meets on Wednesday— despite key employment figures missing due to the shutdown.
The central bank lowered rates by a quarter point at its last meeting in September after data pointed to a cooling labor market, a decision that had to be weighed against the potential inflationary effects of US President Donald Trump’s tariffs.