CPI Report: Inflation “Cooling More Slowly Than Expected”

It’s a disappointment, but inflation’s descent was going to be bumpy.

Chief U.S. economist at Oxford Economics, Ryan Sweet, on the mixed messages received from the latest inflation reading, which indicates inflation seems to be “cooling more slowly than expected.”

Why It Matters: The Consumer Price Index (CPI) measures a mixed basket of costs of goods and services in the U.S. and is used as an important gauge of inflation (high inflation = your dollar buys you less). Today’s reading marks the last inflation reading before the U.S. presidential election next month.

The Numbers: This month’s report indicates inflation is “cooling more slowly than expected” and shows a CPI decrease from 2.5% in August to 2.4% in September. While the pace of inflation has decreased from its 2022 peak, the annual rate continues to be above the federal government’s 2% target.

Core inflation (“core CPI”) – seen as a better data point as the measure strips out volatile energy and food prices – shows that prices increased 0.3% annually, marking a slight increase of .1% when compared to the previous month’s reading.

Something To Consider: Prices for kitchen staples like eggs and butter have increased year over year, with the cost of eggs increasing nearly 40% more than a year ago and butter costs increasing nearly 8%.

Read More: Inflation Cooled in September; CPI Up 2.4% on Year (The Wall Street Journal)

Inflation rate at 2.4% in September, topping expectations; jobless claims highest since August 2023 (CNBC)

Inflation slowed again in September, CPI report shows. Will the Fed keep cutting rates? (USA Today)