US Annual Inflation Rises to 3% Driven by Higher Energy Costs

Annual inflation in the United States rose slightly to 3% in September, up from 2.9% in August, according to data released Friday by the U.S. Bureau of Labor Statistics (BLS), the only official economic report permitted for release during the current government shutdown.

Economists surveyed by Dow Jones had expected monthly and annual increases of 0.4% and 3.1%, respectively. The actual data showed inflation inching up by 0.1 percentage point on an annual basis, with core consumer prices, which exclude food and energy, rising 0.2% month-on-month and 3% year-on-year, slightly below forecasts of 0.3% and 3.1%.

The report highlighted that a 4.1% rise in gasoline prices was the main factor behind the increase, partially offsetting otherwise moderate inflationary pressures across other categories. Prices of core goods also increased 0.5% during the month.

Despite the uptick, analysts said the overall data signaled relative stability in inflation trends, suggesting that underlying price pressures remain contained. The figures are expected to play a key role in shaping the Federal Reserve’s upcoming decisions on interest rates as policymakers assess the balance between controlling inflation and supporting economic growth.