US inflation hits 3%, interest rate cut likely

US inflation has reached 3% in September, the highest since January this year. The Bureau of Labor Statistics reported that the consumer price index rose 0.3% last month, pushing the annual rate to 3%. Gas prices went up by 4.1% and fuel by 4.2%, the highest jump since August 2023. Experts say this is the main reason inflation has surged. Food prices saw moderate increases, while housing-related costs continue to rise. Economists expect inflation to keep growing in the coming months. An average American family spent $208 more in September compared to last year. Compared to 2021, during the height of the pandemic, families are spending an extra $1,043. The new inflation data could encourage the Federal Reserve to consider lowering interest rates. The Fed is scheduled to discuss policy decisions in its upcoming meeting next week.