"Prices rose 0.3% in September from August, the Commerce Department said Friday, in a report that was delayed five weeks by the government shutdown. It matched the increase recorded during the previous month. Excluding the volatile food and energy categories, core prices rose 0.2% in September from August, the same as August, and a pace that if it continued for a year would bring inflation closer to the Fed's 2% target."
"Compared with a year ago, overall prices rose 2.8%, up slightly from 2.7% in August. Core prices also rose 2.8% from a year earlier, a small decline from the previous month's figure of 2.9%. The data indicate that core inflation was muted in September and will bolster the case for a cut to the Fed's key interest rate at its next meeting Dec. 9-10."
"At the same time, there were some warning signs in the figures. Omair Sharif, chief economist at Inflation Insights, said that Friday's report overall will likely reassure the Fed that core inflation is mostly cool. But he noted that a measure of services inflation in the report remains elevated and could raise concerns among some Fed policymakers, since the higher figure doesn't stem from tariffs, but instead broader inflationary pressures."
Prices rose 0.3% in September from August, matching August's increase. Core prices, excluding food and energy, rose 0.2% month-over-month, a pace that if sustained would move inflation closer to the Fed's 2% target. Compared with a year earlier, overall prices rose 2.8% and core prices rose 2.8%, a slight decline from 2.9%. Core inflation remained muted in September, strengthening the case for an interest rate cut at the December Fed meeting. Services inflation remained elevated, raising concerns that broader inflationary pressures persist beyond tariffs. Weak hiring, modest growth, and slower wage gains may reduce price pressures.
Read at Fast Company
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