Washington: The annual inflation rate in the United States rose to 3% in September, surpassing the August figure of 2.9%, yet falling short of market forecasts, as revealed by official data released on Friday.

According to Anadolu Agency, the monthly inflation rate settled at 0.3%, a slight decrease from August's 0.4% and below anticipated levels. The data highlighted a 3.1% year-on-year rise in food prices, while energy prices saw a 2.8% increase during the same period.

Energy services notably contributed to the overall inflation upsurge in September, with a 6.4% year-on-year rise. This increase was largely driven by elevated utility (piped) gas and electricity service prices, which jumped by 11.7% and 5.1%, respectively. Meanwhile, core inflation, which omits food and energy price fluctuations, was recorded at 3% for September, marking a decline from the previous month.

On a month-to-month basis, shelter prices experienced a 0.2% rise, food prices went up by 0.2%, and energy prices climbed 1.5% in September, predominantly due to a 4.1% hike in gasoline prices.

The upcoming Federal Reserve meeting is set to focus on these inflation figures as they play a crucial role in shaping monetary policy decisions. The central bank is scheduled to announce its interest rate decision next Wednesday. Given the lower-than-expected inflation data and the deceleration in the job market, the Federal Reserve is anticipated to reduce the policy rate once again during this meeting.

Despite the government shutdown causing a temporary halt in government data releases, the inflation data managed to be published this month.Source: Anadolu Agency - English