US Inflation Slows to 2.4% in September, Strengthening Rate-Cut Bets
Read the full article for context, quotes, and updates from the team.
US consumer prices rose 2.4% in September from a year earlier, marking the slowest annual pace in nearly four years and coming in below economists’ expectations of 2.6%. The softer reading adds to evidence that inflation continues to cool after a prolonged period of elevated price pressures.
The report also showed core CPI, which excludes food and energy, increased 3.3% year over year. While still above the Federal Reserve’s long-term target, the core measure suggests underlying inflation is easing gradually rather than reaccelerating.
Markets interpreted the data as supportive of a possible rate cut at the Fed’s next meeting. Traders have increasingly priced in policy easing as inflation trends closer to target and economic growth shows signs of moderation. Following the release, US stock futures moved higher in after-hours trading, reflecting investor optimism that borrowing costs may soon begin to fall.
The latest CPI figures are likely to reinforce the central bank’s focus on balancing progress against inflation with the need to avoid over-tightening the economy. For now, the report points to a disinflationary trend that could give policymakers more room to ease policy in the months ahead.
