Economy|InflationUS consumer prices rise less than expected before Fed decisionThe biggest increases came from the surging price of petrol, according to the report.

United States consumer prices experienced a moderate increase in September, reflecting ongoing inflationary pressures within the domestic economy.

According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose by 0.3 percent in September compared to the previous month, a deceleration from August's 0.4 percent increase. Year-over-year, the CPI recorded a 3 percent rise, following a 2.9 percent increase in the prior month.

The price of petrol rose by 4.1 percent on a monthly basis. The overall energy index increased by 1.5 percent. Food prices saw a 0.2 percent rise in September following a 0.5 percent increase in August. Prices for goods and services excluding food and energy, such as shelter, airline fares, household items, and apparel, rose by 0.2 percent, down from August's 0.3 percent increase.

Federal Reserve and Economic Implications

This data precedes the Federal Reserve's upcoming meeting, where a 25 basis point reduction in the benchmark interest rate to a range of 3.75 to 4 percent is anticipated.

The government shutdown has limited the availability of economic data, with the CPI report being an exception. This report informs the U.S. Social Security Administration's cost-of-living adjustment, resulting in a 2.8 percent increase in monthly payments for beneficiaries in 2026.

Data collection challenges persist due to the shutdown, affecting November reports and posing difficulties for economists as the Bureau of Labor Statistics faces budget and staffing constraints.

As of 11am in New York (15:00 GMT), U.S. markets show an upward trend. The Nasdaq has increased by slightly more than 1 percent, the S&P 500 by 0.7 percent, and the Dow Jones Industrial Average by nearly 0.9 percent.

Based on reporting by Al Jazeera.