Inflation stayed well above the Federal Reserve's target of a 2% annual rate in September according to a belated report on consumer prices.

A shutdown-delayed federal report released Friday found overall U.S. inflation crept up slightly in September, driven mostly by rising gas and grocery prices as consumer spending cooled.

US consumer spending stalled in September, suggesting Americans were already stretched going into the government shutdown in the face of stubborn inflation.

Stagflation looks increasingly likely in 2026 as the economy looks on track to grow below-trend while inflation runs "uncomfortably" hot, RBC said.

Consumer prices increased moderately in September. The Personal Consumption Expenditures price index, which is the Federal Reserve’s preferred inflation gauge, showed a 0.3 percent monthly increase in prices.

Trump will go to Pennsylvania on Tuesday to discuss his administration's efforts on rising prices as Americans say they continue to have concerns about the state of the economy.

Apollo's top economist is eyeing risks including a fresh bout of inflation and massive influx of new bond issuance pressuring markets in 2026.