US inflation rises less than expected to 3% in September

US annual inflation rose less than expected in September, strengthening expectations that the Federal Reserve could proceed with another interest rate cut at its upcoming meeting.

Official data released Friday showed that the Consumer Price Index (CPI) increased 3% year-on-year (YoY) in September, below expectations of 3.1%, compared with 2.9% in August.

The release of the data was delayed from Oct. 15 due to the partial government shutdown that began earlier this month.

Meanwhile, core inflation—which excludes volatile food and energy prices—also came in at 3%, slightly below forecasts of 3.1%.

On a monthly basis, headline CPI growth slowed to 0.3% in September, down from 0.4% in August, while the core index rose 0.2%.

Food prices climbed 0.2% month-on-month (MoM) and 3.1% YoY, while energy prices increased 1.5% MoM, driven mainly by higher gasoline costs.