Consumer Prices Up 2.4% YOY in September, Inflation Cools

Washington, DC, October 10, 2024-The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% on a seasonally adjusted basis, the same increase as in August and July, the U.S. Bureau of Labor Statistics reported. 

Over the last 12 months, the all items index increased 2.4% before seasonal adjustment. The index for shelter rose 0.2% in September, and the index for food increased 0.4%. Together, these two indexes contributed over 75% of the monthly all items increase. The food at home index increased 0.4% in September, and the food away from home index rose 0.3% over the month. The energy index fell 1.9% over the month, after declining 0.8% the preceding month.

Says the Wall Street Journal, “U.S. inflation is cooling more slowly than expected, new data showed.

“The consumer-price index rose 2.4% from a year earlier, the Labor Department said Thursday, after rising 2.5% in August. That was above the 2.3% year-over-year rise that economists polled by The Wall Street Journal had expected.

“Core prices, which exclude volatile food and energy items, climbed 3.3% over the previous 12 months, slightly hotter than the 3.2% rise in August. That was also above expectations.

“Federal Reserve officials will meet again next month. Thursday’s inflation data, along with additional data that will be released Friday, will play an important role in what they decide to do with interest rates.

“Thursday’s report could play an important role in what Federal Reserve officials decide to do with interest rates. Investors have been rethinking the near-term future path of short-term rates. 

“The Fed has a dual mandate to promote both full employment and stable prices. Over the past few years, its focus has been squarely on high inflation. It raised rates aggressively throughout 2022 and 2023.”