US CPI rate picks up at slower pace than forecast

US consumer price inflation accelerated at a slower pace than expected in September, belated numbers from Bureau of Labor Statistics showed on Friday, days before the next Federal Reserve decision.

The annual consumer price inflation rate accelerated to 3.0% in September, from 2.9% in August.

The September reading was short of the FXStreet-cited consensus of 3.1%, however.

On-month, consumer prices increased 0.3% in September. They had risen 0.4% in August from July. The September reading fell short of consensus, as another print of 0.4% was forecast, according to FXStreet.

The annual consumer price inflation is at the loftiest level since January and above the Fed's 2% target.

The Fed announces a rate decision on Wednesday. A 25 basis point cut to a federal funds rate range of 3.75%-4.00% is expected.

The government shutdown threatened to prevent the Fed from getting a new inflation reading by then. Friday's reading had been originally scheduled to be released last week Wednesday.

The BLS reports data across four main categories: prices, employment and unemployment, compensation and working conditions, and productivity.

This includes statistics on the consumer price index, total nonfarm payroll employment, the unemployment rate, wages, hours worked, and productivity measures. The nonfarm payrolls, which were scheduled at the start of the month, were cancelled.

The private payrolls reading by ADP was still released at the start of October, however.

According to the payroll services provider, the US private sector shed 32,000 jobs in September, an outcome that fell short of the FXStreet-cited expectation of 50,000 additions. In August, 3,000 jobs were lost, in a reading massively revised from an initially reported 54,000 rise in payrolls.