Key facts
- US consumer prices rose 0.3% in September, below economists' expectations.
- Annual inflation in the US was 3.7% in September.
- Core CPI, which excludes volatile food and energy prices, also rose 0.3% in September.
- Annual core inflation stood at 4.1% in September.
- The Federal Reserve is expected to keep interest rates unchanged at its next meeting.
- The Fed has been raising interest rates to combat inflation.
US inflation cooled slightly in September, with the consumer price index rising less than anticipated and bolstering expectations that the Federal Reserve will hold interest rates steady at its next meeting. The CPI increased 0.3% in September, according to data released on Wednesday. Economists had forecast a 0.4% rise. In the 12 months through September, the CPI advanced 3.7%, the same pace as in August. Core CPI, which excludes volatile food and energy prices, also rose 0.3% in September. In the 12 months through September, core inflation increased 4.1%, down from 4.3% in August. The Federal Reserve has been raising interest rates to combat inflation and is closely watching inflation data as it considers its monetary policy path.