Don Luskin, the chief investment officer of TrendMacro, reacts to the CBS News Vice Presidential Debate on The Evening Edit. (Courtesy: CBS News)
Inflation continued to cool in September to the lowest level in three years, though the report came in slightly hotter than expected.
The Labor Department on Thursday said the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.2% in September from the prior month and was up 2.4% from a year ago.
Economists predicted that inflation would slow to 2.3% on an annual basis with it rising 0.1% from last month, according to estimates by economists surveyed by LSEG.
So-called core prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, were up 0.3% on a monthly basis and 3.3% compared to a year ago – slightly higher than LSEG economists’ expectations of 0.2% and 3.2%, respectively.
Overall, the report showed signs that inflationary pressures in the U.S. economy are continuing to ease, though prices remain stubbornly above the Federal Reserve’s 2% target.
High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly devastating for lower-income Americans, because they tend to spend more of their already-stretched paycheck on necessities and therefore have less flexibility to save money.
Much of the rise in core inflation in September came from prices for shelter rising 0.2% compared to August. Shelter prices are up 4.9% over the last year, and accounted for over 65% of the total 12-month increase in the core inflation index that excludes food and energy.
Other areas with notable price increases from a year ago include motor vehicle insurance (+16.3%), medical care (+3.3%), personal care (+2.5%) and apparel (+1.8%).
Prices for airline fares rose 3.2% in September compared to August. That was slightly slower than the 3.9% increase a month ago, and leaves the year-over-year rise at 1.6%.
This is a developing story. Please check back for updates.
