The Consumer Price Index (CPI) rose 3% in September from a year earlier, slightly below economists’ forecast of 3.1%, as the impact of President Trump’s tariffs remained limited.

The Labor Department released the data despite the government shutdown because it determines Social Security’s annual cost-of-living adjustment.

Economists say tariffs continue to add modest upward pressure on prices, though inflation remains well below its 2022 peak of 9.1%.

The Federal Reserve now faces a dilemma: inflation is inching higher while job growth is weakening, CBS News has reported.

Despite this tension, most analysts expect the Fed to cut interest rates by a quarter point at its Oct. 29 meeting, reflecting greater concern over the slowing labor market.