Inflation in the US rose less than expected, reaching 3% in September

US inflation rose to 3% in September, slightly below expectations of 3.1%, strengthening the case for the Federal Reserve to continue cutting interest rates at its next meeting.

Source Financial Times

The US dollar and Treasury yields dipped following the report, as markets priced in further rate cuts before the end of the year. Economists noted that slower inflation, combined with signs of a weakening labor market, supports the Fed’s easing trajectory.

According to the Bureau of Labor Statistics, energy prices increased 2.8%, while food prices rose 3.1%. Core inflation, excluding volatile items, also came in at 3%, slightly below forecasts.