An inflation gauge closely watched by the Fed falls to its lowest level since early 2021.
Government data reports a 2.1% rise in prices in September from a year earlier, close to pre-pandemic levels.
The big picture: Core prices rose by 2.7% in September, higher than the Fed’s 2% target, but have slowed down over the past six months.
- Economists expect the Fed to cut its key rate by a quarter-point in the upcoming meeting.
- Workers’ wages and benefits grew by 0.8% in the July-September quarter, the slowest pace in three years.
- Despite the economic improvements, some voters remain concerned about high prices and the state of the economy.
Flashback: Inflation peaked at 7.1% in June 2022 and has steadily cooled over the past two years.
