September inflation weakest in three years as price growth continued decline

Inflation weakened to its slowest pace in almost three years last month, as price growth continued to fall back from its highest levels in a generation.

With concerns over the heightened cost of living at the heart of the presidential election campaign, the Bureau of Labor Statistics released its final monthly inflation reading before voters head to the polls.

The consumer price index rose at an annual pace of 2.4% in September, slightly higher than economists’ expectations of 2.3%, and down from 2.5% in August. The so-called “core” index, which strips out volatile food and energy prices, increased at an annual rate of 3.3%. Over the month, prices rose 0.2%.

Though prices surged three years ago, their rapid growth has since slowed significantly from their 9.1% peak in June 2022. The US Federal Reserve, which scrambled to increase interest rates in a bid to cool the world’s largest economy, started cutting rates last month.

The broader US economy appears to be growing at a robust pace. American employers added 254,000 jobs last month, according to official data released on Friday, defying fears of a slowdown in the labor market.