CPI report: Inflation rises to 3%, shy of economists' predictions

Consumer inflation rose to 3% in September, just shy of what experts expected, according to the Consumer Price Index report released Friday.

The report from the Bureau of Labor Statistics showed prices rose 0.3% compared to the previous month. In response to the data, the Social Security Administration increased the annual cost-of-living benefit by $56 per month to 2.8% for 2026.

The CPI report was originally scheduled to be published Oct. 15, but the shutdown delayed work. However, since federal law requires the SSA to make its cost-of-living adjustment -- known as COLA -- by Nov. 1 based on inflation from the third quarter, the Trump administration called BLS employees back to work.

The BLS called back economists and IT specialists to prepare the report the second week of October.

With the CPI report now public, the Federal Reserve is expected to announce whether there will be a change in interest rates next week.

Lindsay Rosner, head of multi-sector income investing at Goldman Sachs Asset Management, told Politico that Friday's CPI report likely won't "spook" the Federal Reserve "and we continue to expect further easing at next week's Fed meeting."

"A December rate cut also remains likely with the current data drought providing the Fed with little reason to deviate from the path set out" in September projections, she added.

Economic experts expected Friday's report to show a slightly higher inflation of 3.1%, which would have been its highest level since May 2024, ABC News reported.

Thursday marked the 23rd day the government was closed for business pending the passage of a stopgap funding bill, making it the second-longest federal shutdown in U.S. history. Friday is Day 24.