The United States’ Consumer Price Index (CPI) came in at 3% in September, slightly lower than expected ahead of the Federal Reserve’s next interest rate decision this week.
The monthly inflation rate was 0.3%, according to the U.S. Bureau of Labor Statistics (BLS).
Dow Jones estimates had included an annual inflation rate of 3.1% and a monthly reading of 0.4%.
“The index for gasoline rose 4.1% in September and was the largest factor in the all items monthly increase, as the index for energy rose 1.5% over the month. The food index increased 0.2% over the month as the food at home index rose 0.3% and the food away from home index increased 0.1%,” the BLS wrote.
“The index for all items less food and energy rose 0.2% in September, after rising 0.3% in each of the 2 preceding months.”
The CPI had increased by 0.4% in August.
Annual inflation rates excluding food and energy were also 3.0% in September. The total annual inflation rate had been 2.9% in August, and excluding food and energy was 3.1%.
The CPI for commodities, excluding food and energy, fell from 0.3% in August to 0.2% in September. Annual commodity inflation rates were 1.5%.
For services excluding energy, the CPI also dropped from 0.3% in August to 0.2% in September. Annual services inflation was 3.5%.
Most other economic data releases are currently suspended due to the ongoing government shutdown. The CPI had been delayed from 15 October, and the Producer Price Index has been postponed indefinitely.
The Federal Reserve’s next interest rate decision is due on 29 October, with markets expecting a rate cut of 0.25%.
“This inflation print is a sigh of relief for the Fed,” said Fitch Ratings’ U.S. Economic Research head Olu Sonola. “As odd as it may seem, the Fed will be happy with inflation staying around 3% for the next couple of months.”
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