Consumer prices rose 2.4% from a year earlier in September, the slowest annual pace since late 2023, according to government data released on Wednesday. Shelter costs, the largest single component, rose at the weakest monthly rate in two years, while used-car prices fell for a fourth month.
What the data says
Core inflation, which strips out food and energy, edged down to 2.7%. Services excluding housing, a measure policymakers watch closely, was flat on the month. Grocery prices were the main upside surprise, rising 0.4% after a steady summer.
Economists caution that a single reading rarely settles the debate. Revisions to earlier months have been large this year, and the gap between survey data and hard data remains unusually wide. Policymakers have said they will keep watching a broad set of indicators before changing course.
Consumer prices rose less than forecast in September as rents and used cars eased, giving central bankers more room to hold rates steady.
Why it matters for households
This article is for information only and is not investment advice. Figures are illustrative and may be delayed or simulated for demonstration purposes.
This article is for information only and is not investment advice.
