Washington: The inflation rate in the United States continued to rise last month as prices for some imported goods increased, while rent prices slowed down. The U.S. Department of Labor reported on Friday that consumer prices rose by 3% in September compared to the same month last year, up from 2.9% in August. Excluding the volatile food and energy categories, core prices also increased by 3%, slightly lower than the 3.1% recorded the previous month. However, both rates remain above the Federal Reserve's target of 2%.
According to Yemen News Agency, the Consumer Price Index (CPI) report was released more than a week late due to the ongoing government shutdown, which has now entered its fourth week. President Donald Trump's administration recalled some Department of Labor employees to compile these figures, which are used to determine the annual cost-of-living adjustment for about 70 million Social Security beneficiaries.
The figures reflect a smaller increase than many economists had anticipated and are likely to encourage the Federal Reserve to lower its benchmark interest rate at its meeting next week for the second time this year. However, inflation remains above the Fed's 2% target, highlighting the elevated risks associated with the central bank's policy decisions.
Gasoline prices rose 4.1% in September alone compared to the previous month, serving as a major driver of inflation last month. Grocery prices increased 0.3%, below August's rate, but remain 2.7% higher than during the same period last year.