The Federal Reserve typically raises interest rates when it wants to stabilise prices and lowers them when it believes the economy needs a boost to keep employment stable.
But it is currently facing an economy showing signs of both problems.
Hiring has slowed in recent months, while prices continue to rise faster than the bank’s 2% target rate, pushed up in part by the Trump’s administration’s policies such as tariffs.
Prices for furniture, which is heavily imported, for example, have increased 3.8% over the 12 months to September, and rose a solid 0.9% over the month.
Costs for services, like haircuts, airfares and daycare, also continue to climb.
But though inflation has ticked up, it has remained more limited than analysts had initially forecast, as many firms hesitate to pass the full cost of the new border taxes onto their customers in the form of higher prices.
From August to September, prices rose 0.3%, moderating a bit from the 0.4% rise in the prior month.
Wells Fargo analysts said the softer-than-expected numbers all but guaranteed the Fed would cut interest rates next week.
“That said, today’s data were not so soft that the Committee can sound the all clear,” they added.