In September, prices rose by 3% year-on-year, above the 2% target. Wall Street judged that this level would not prevent an interest rate cut and responded with a rally. However, inflationary pressures could continue to be fueled by tariffs.

The annual inflation rate as measured by the CPI was expected to be 3.1% in September, according to the Dow Jones consensus estimate.

The price increases remained milder than feared, keeping the US central bank on track to cut interest rates next week.

The annual inflation rate ticked higher in September, amid higher prices at the gasoline pump and a more muted increase at the grocery store.

In September, prices rose by 3% year-on-year, above the 2% target. Wall Street judged that this level would not prevent an interest rate cut and responded with a rally. However,…