Oct 10, 2024 - Business
Inflation falls to 2.4%, lowest in three years
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The Consumer Price Index rose 2.4% in the 12-month period that ended in September, while a gauge that strips out food and energy prices was 3.3%, the government said Thursday.
Why it matters: The September CPI report is the latest data indicating that the inflation crisis is in the rear view mirror, with few signs of price pressures reigniting.
By the numbers: The September CPI figure, the smallest increase since February 2021, compared to the 2.5% increase in the year ending in August.
- Core CPI, meanwhile, ticked up from August.
- On a monthly basis, the CPI rose 0.2%, the same as the two prior months. Core CPI—excluding food and energy—also held at 0.3%.
What to watch: The Federal Reserve, once squarely focused on cooling inflation, has pivoted its focus to the labor market.
- The central bank cut interest rates by a half-percentage point last month—the first time officials lowered rates since 2020—with the intention to protect the job market that looked to be wobbling.
- Some Fed officials are still wary about inflation getting stuck below the Fed's 2% target and keeping a close watch on the housing category that has remained firm.
Editor's note: This story was updated with a new chart.
