Institution: U.S. September inflation rate may rise to a new high in 17 months.

On October 23, according to the financial website Investopedia, forecasters say that due to tariffs pushing up prices, the U.S. inflation rate in September may rise to a new high in 17 months. A survey of economists conducted by The Wall Street Journal indicates that the CPI report due out this Friday may show a 3.1% year-over-year increase in overall prices for December. The rise in inflation will highlight the impact of Trump's tariffs, as the inflation rate has almost risen every month since Trump announced the tariffs in April. Despite rising prices, low rent increases may prevent the overall inflation rate from rising excessively. The core inflation rate is expected to rise by 3.1% in September, unchanged from August. In summary, the increase in inflation may not be large enough to prevent the Fed from cutting rates in late October. The Fed already cut rates by 25 basis points in September to support the sluggish job market, and now it is more focused on the job market rather than combating inflation. Wells Fargo economists Sarah House and Nicole Cervi stated, “We expect that due to the continued transmission of tariff impacts, goods inflation will remain high, while easing of major housing costs should help alleviate service sector inflation.” ( Jin10 )