Inflation increased 3% compared to last year, report shows

Inflation Trends - Inflation rose by 3% year-over-year in September and 0.3% month-over-month [1][2] - The September inflation report was surprisingly weak, lower than economists expected [3][4] - August to August inflation was 2.9%, a slight uptick [4] - The 3% yearly inflation figure is lower than the peak inflation seen in the summer of 2022 [4] Category Breakdown - Food price inflation decelerated, up by 0.2% in September, compared to almost 0.5% in August [7] - Energy prices rose by 1.5% in one month, but are expected to decrease in the October report [8] - Shelter costs inflation decelerated, up by 0.2%, contributing to the lower headline number [9] Federal Reserve & Economic Factors - There's a 96% chance the Fed will implement a quarter point rate cut [9] - The Fed's decision-making is complicated by the lack of recent labor data due to the government shutdown [10] - Gas prices and services like airfare were significant drivers of inflation [6] Data Reliability - The September inflation data was collected before the government shutdown, so its accuracy isn't in question [11] - Concerns exist regarding the accuracy of the October report due to the government shutdown impacting data collection [12][13]