The US inflation report shows that September prices climbed similarly to August, with a lower trend in price hikes when volatile categories like food, energy, and shelter are removed.

This is good news for the Federal Reserve, which had been leaning towards raising interest rates again in November.

However, the data shows the Fed has work to do to bring inflation back to its 2% objective, leaving investors hopeful for a December rate hike.

The US labor market remained tight, with companies adding more positions than projected and earnings growing at their weakest pace in two years.

Some economists see September as the third month of unchanged headline inflation and stagnant core inflation, threatening the Fed’s year-end conclusion.