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Inflation Cools Slightly in Delayed CPI, Strengthening Odds of Fed Cut Next Week

BLS recalled staff to publish the index so Social Security could set the 2026 cost‑of‑living increase.

Overview

  • Consumer prices rose 0.3% in September and 3.0% over 12 months, with core CPI up 0.2% on the month and 3.0% year over year, all slightly below forecasts.
  • A 4.1% jump in gasoline was the biggest driver of the monthly increase, while shelter rose 0.2% and used‑car prices declined.
  • Markets kept near‑certainty on a 25‑basis‑point rate cut at the Oct. 28–29 Fed meeting, and equities advanced on the softer print.
  • The Social Security Administration set a 2.8% cost‑of‑living adjustment for 2026 after the CPI release during the ongoing federal shutdown.
  • Economists said tariffs are adding pressure to goods prices and warned the shutdown could impair collection and reliability of October and later CPI data.