Sunday, October 26, 2025

U.S. Inflation Cools Slightly, but Shutdown Clouds the Economic Picture

U.S. consumer prices rose less than expected in September, suggesting that inflation pressures are easing. The Consumer Price Index increased only 0.2%, while core inflation held steady at 3.1% year over year. This slowdown could give the Federal Reserve room to begin lowering interest rates, providing some relief to borrowers and stabilizing markets strained by high costs.

However, the ongoing government shutdown is creating uncertainty by disrupting key data collection. Without full access to reports from agencies such as the Bureau of Labor Statistics, policymakers may struggle to gauge the actual state of the economy. This leaves the Fed in a difficult position, balancing progress on inflation with the risks of acting without complete information.

Article: US consumer inflation cools in September; government shutdown threatens next report By Lucia Mutikani

Link: https://www.reuters.com/world/us/us-consumer-prices-rise-slightly-less-than-expected-september-2025-10-24/?utm_source=chatgpt.com

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