US Inflation Stays Elevated But Prices Rose Less Than Feared Last Month – KXL

WASHINGTON (AP) — U.S. inflation remained elevated last month as gas prices jumped while the cost of rents cooled, painting a mixed picture of the expenses consumers are facing in a murky economy where growth appears steady but hiring slow.

Consumer prices increased 3% in September from a year earlier, the Labor Department said Friday.

The figures reflect a smaller increase than many economists had forecast, and will likely encourage the Federal Reserve to cut its key interest rate when it meets next week for the second time this year.