US Inflation Edges Up 0.2% in September, Strengthening Fed Cut Bets
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US consumer prices rose 0.2% in September, coming in below economists’ expectations for a 0.3% increase, according to the latest inflation data. On an annual basis, the Consumer Price Index held steady at 2.4%, suggesting that price pressures continued to moderate after a period of elevated inflation.
A closer look at the report showed that core CPI, which excludes the more volatile food and energy categories, increased 0.3% from the previous month and 3.3% over the past year. While core inflation remains above the Federal Reserve’s long-term target, the latest reading points to a gradual cooling trend in underlying price growth.
The softer-than-expected report is likely to reinforce market expectations that the Federal Reserve could move toward a rate cut at its November meeting. Policymakers have been watching for sustained evidence that inflation is easing without a sharp deterioration in the labor market. September’s figures add to that narrative, giving the central bank more room to consider easing borrowing costs if economic conditions remain stable.
