WASHINGTON—Consumer prices rose less than expected in September, the Bureau of Labor Statistics reported Friday, reinforcing expectations that the Federal Reserve could move forward with another interest rate cut this week.
The Consumer Price Index increased 0.3% for the month, bringing the annual inflation rate to 3%—slightly below economists’ forecasts.
“Both core and headline inflation grew at slower pace in September than they did in August,” stated America's Credit Unions Senior Economist Dawit Kebede. “The numbers also came in below consensus expectation. Core inflation, which excludes volatile energy and food prices, came down a bit on annual basis for the first time since March.”
The slower than expected price growth is good news for the Federal Reserve, Kebede observed.
“It should help them continue cutting interest rates as the job market weakens. So far, the tariff impact has stayed modest and gradual. Credit unions remain trusted providers of affordable financial solutions for their members even in this high-cost environment," Kebede said.