The last piece of official inflation data to land before the Federal Reserve’s policymaking meeting next week was a shutdown-delayed report that showed the pace of price hikes remained stubborn in September and consumer spending waned after a summer splurge.

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.

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.

U.S. economic growth will increase slightly next year but employment gains will remain sluggish and the Federal Reserve will slow any further rate cuts, economists polled by the National Association for Business Economics said in the group's year-end forecast survey.

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.

India's central bank cut its policy rate by 25 basis points to 5.25%, matching forecasts from economists polled by Reuters.