10/31/2024

An Inflation Gauge Has Fallen to its Lowest Level Since Early 2021

This gauge is closely watched by the Federal Reserve

As a presidential race profoundly shaped by Americans’ frustration with high prices, exacerbated by constant media focus, nears its end, the government said Thursday that an inflation gauge closely watched by the Federal Reserve has dropped to near pre-pandemic levels.

The Commerce Department reported that prices rose just 2.1 percent in September from a year earlier, down from a 2.3 percent rise in August. That is barely above the Fed’s 2 percent inflation target and in-line with readings in 2018, well before prices began surging after the pandemic recession.

Yet, some signs of inflation pressures remained. Excluding volatile food and energy costs, so-called core prices rose 2.7 percent in September from a year earlier for the third straight month. On a monthly basis, core prices rose 0.3 percent from August to September, up from 0.2 percent from July to August. The increase in the core rate is higher than the Fed would prefer.

Please select this link to read the complete article from The Associated Press.