Inflation in the U.S. dropped last month to its lowest point since it first began surging more than three years ago, according to a new report from the Labor Department.
Consumer prices rose just 2.4% in September from a year earlier, down from 2.5% in August, and the smallest annual rise since February 2021.
Taken as a whole, the September figures show that inflation is steadily easing back to the Fed’s 2% target, even if in an uneven pattern.
That decline suggests that the Fed will likely keep cutting its benchmark interest rate this year, with two quarter-point reductions in November and December expected by most economists. Read more.