ISTANBUL 

The annual inflation rate in the US was at 3% in September, coming below market forecasts but up from 2.9% in August, according to official data released Friday.

According to data from the Bureau of Labor Statistics, the monthly inflation rate was at 0.3%, down from 0.4% in August and below expectations.

Food prices in the US rose by 3.1% in September on a yearly basis, while energy prices were up 2.8%.

Energy services prices in particular drove the overall inflation up in September, rising 6.4% year-on-year, due to price increases in utility (piped) gas and electricity services, up 11.7% and 5.1%, respectively.

The core inflation, which excludes food and energy price increases, was at 3% in September, down from the previous month.

Month-on-month shelter prices rose 0.2%, food prices increased 0.2% over the month, and the energy prices rose 1.5% in September, largely due to a 4.1% increase in gasoline prices.

Upcoming Fed meeting

The inflation figure is one of the most important indicators that the Federal Reserve looks for when determining the monetary policy decisions.

The central bank will announce its interest rate decision next Wednesday. With the lower-than-expected inflation data, and the slowing job market, the Fed is expected to cut the policy rate again at this meeting.

Also, despite the government shutdown, which caused a blackout for the government data releases, the inflation data was released this month.