The Federal Reserve is almost universally viewed as on track to cut interest rates next week, despite inflation running at a 3% annual rate in September — well above the Fed’s 2% target.

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.

Consumer prices rose in September at an annual rate of 3%, but increased a little less than economists had predicted, the Labor Department reported Friday.

The latest inflation report may or may not have an adverse impact on mortgage rates. It's too soon to tell definitively. But it won't help ease the Fed toward additional rate cuts, and it could complicate the mortgage rate climate more than it already is.

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.

ABC News’ Alex Presha spoke with Martha Gimbel, executive director and co-founder of the Budget Lab at Yale, about what the new inflation report means and what could influence prices going forward.

The news that inflation could be worse is hardly comforting for millions of Americans still flabbergasted at the prices of necessities like food, housing and insurance.

If your cash savings aren’t earning at least this key rate, you’re falling behind. The good news: dozens of options make it easy to earn more.