Inflation rose in September. The Bureau of Labor Statistics released CPI data during the government shutdown, which has affected some operations.

Economists expect prices to have risen 3.1% in September, which would mark a slight increase from a 2.9% year-over-year increase recorded a month prior. The anticipated reading would amount to the highest inflation since May 2024.

The first point to remember, economists say, is that the Fed believes its current benchmark interest rate — at a range of 4% to 4.25% — is so high that it is actually slowing down the U.S. economy. Fed officials have debated how much it is slowing the economy, but they all agree on this basic fact.

Consumer prices rose in September at an annual rate of 3%, but increased a little less than economists had predicted, the Labor Department reported Friday.

The cost of living got even more expensive for Americans last month, with prices rising at the fastest pace since the start of the year.

Inflation heated up for a fifth straight month in September as the headline figure for the Consumer Price Index rose to 3.0% year-over-year.

The news that inflation could be worse is hardly comforting for millions of Americans still flabbergasted at the prices of necessities like food, housing and insurance.

Better-than-expected inflation data Friday morning sparked an end-of-week rally in stocks, sending the Dow, S&P 500 and tech-heavy Nasdaq Composite soaring to fresh record highs.