Inflation hits 3% in first report since shutdown

(NewsNation) — The nation's annual inflation ticked up to 3%, and prices rose 0.3% in September from August, according to the latest consumer price index report.

Friday's numbers marked the first federal update on inflation since the government shutdown began more than three weeks ago. Notable increases included gasoline prices, which were up 4.1% in September.

The new report, a critical gauge of inflation, came more than a week late, after the Bureau of Labor called back furloughed employees to finish it.

Its results were lower than the 3.1% year-over-year and 0.4% month-to-month increase predicted by economists.

The data is used to decide Social Security Cost of Living Adjustments, or COLA.

"Technically, if inflation comes in higher than the cost of living, then the adjustment for social security next year will be higher," Doug Flynn, co-founder of Flynn Zito Capital Management, told NewsNation.

Next week's Federal Reserve meeting could also hinge on the numbers, with stronger inflation possibly delaying rate cuts.

Beyond the headline numbers, investors will be looking closely at how the data was collected during the shutdown, with many workers out of work.

Limited data gathering could affect October’s CPI and other economic reports. If Friday's report doesn't include details on how the data was gathered, markets could react to credibility concerns — not just inflation itself.