The delayed September CPI report revealed that the impact of tariffs remains moderate, removing the final hurdle for the Fed to lower interest rates next week.
Overall inflation hit 3% last month, the BLS reported Friday, coming in a touch below economists’ forecasts for a 3.1% rise.
While the September figure is still a full percentage point above the Fed’s 2% target—and the highest level of inflation seen since January—it signals that the path of price growth is modest enough to allow for additional rate cuts.