Inflation Expected to Reach Highest Level in More Than a Year

A new inflation report due Friday will show whether prices have continued to climb — potentially fueling concern about the impact of President Donald Trump’s tariffs and complicating efforts to revive a sluggish labor market, Max Zahn reported for Good Morning America.

Economists expect consumer prices to have risen 3.1% in September, up from 2.9% a month earlier — the highest inflation rate since May 2024.

The report’s release comes more than a week later than scheduled due to the ongoing government shutdown, which has disrupted the publication of key economic data.

Economists expect consumer prices to have risen 3.1% in September, up from 2.9% a month earlier — the highest inflation rate since May 2024.

The report arrives at a precarious moment for the U.S. economy. Inflation has accelerated even as hiring has slowed, raising the risk of a painful economic combination known as “stagflation.”

The conditions have left the Federal Reserve facing a difficult choice: raising interest rates to curb tariff-driven inflation could tip the economy into recession, while lowering rates to spur hiring could fuel additional price increases.