Analysis: U.S. September inflation report opens door for Fed to cut rates again next week

U.S. inflation rose to 3% in September, a lower-than-expected increase, opening the door for the Federal Reserve to continue cutting interest rates next week. Data released by the Bureau of Labor Statistics on Friday showed that the consumer price index rose 3% year-on-year in September, a rebound from 2.9% in August but below market expectations of 3.1%. This data reinforced market expectations for further rate cuts at the Fed's two remaining meetings this year, leading to a slight decline in the dollar and Treasury yields. The data, delayed due to the U.S. government shutdown, comes just before the Fed's policy meeting next Tuesday and Wednesday. The market generally expects the Fed to cut interest rates by another 25 basis points.