U.S. consumer prices increased slightly less than expected in September as a surge in the cost of gasoline was partially offset by a sharp moderation in rents, keeping the Federal Reserve on track to cut interest rates again next week.

The federal government recalled some furloughed workers specifically to produce the inflation report, which plays a key role for Social Security beneficiaries.

Economists expect prices to have risen 3.1% in September, which would mark a slight increase from a 2.9% year-over-year increase recorded a month prior. The anticipated reading would amount to the highest inflation since May 2024.

The cost of living got even more expensive for Americans last month, with prices rising at the fastest pace since the start of the year.

Economists think inflation around the U.S. continued to climb in September, edging farther away from the Fed's 2% annual target.

The Bureau of Labor Statistics' September consumer price index report shows that inflation increased 3% compared to last year and fell to 0.2% on a month-to-month basis. NBC News' Brian Cheung and Investopedia editor-in-chief Caleb Silver break down the numbers in the first major economic report released since the government shutdown.

Inflation remained elevated in September as the BLS released the delayed consumer price index inflation report, as Fed policymakers are set to weigh interest rate cuts next week.

Better-than-expected inflation data Friday morning sparked an end-of-week rally in stocks, sending the Dow, S&P 500 and tech-heavy Nasdaq Composite soaring to fresh record highs.