Mon Oct 14 12:42:12 UTC 2024: ## Inflation Cools Slightly, But Not As Much As Expected

**Washington, D.C.** – Consumer prices rose 2.4% in September compared to last year, according to data released by the Bureau of Labor Statistics on Thursday. While this represents a slight decrease from the previous month’s 2.5% increase, it was less of a slowdown than economists had anticipated.

Despite the mixed news, there were some positive signs. Shelter costs, a major driver of inflation, showed signs of moderating in September. This is a welcome development for policymakers who have been closely watching this category.

However, the report also highlighted some lingering concerns. Core inflation, which excludes volatile food and energy prices, increased to 3.3% from 3.2% the previous month. This suggests that price pressures remain elevated in certain sectors.

“Inflation doesn’t slow in a straight line, but the overall trend is one of slowing,” said Gennadiy Goldberg, head of U.S. rates strategy at T.D. Securities.

The Federal Reserve, which is tasked with keeping inflation at a target of 2%, will likely continue its course of gradual interest rate cuts as inflation cools. Investors still widely expect a rate cut in November. However, the latest inflation data may dispel any hopes for a larger rate reduction at the upcoming meeting.

“The Fed doesn’t need to do half-point rate cuts, because inflation is still somewhat of a risk,” Mr. Goldberg added.

Meanwhile, the stock market reacted negatively to the news, with the S&P 500 slipping slightly.

**Other Key Points:**

* **Food prices:** Egg prices continued their upward trend, rising 8.4% in September. This contributed to a 0.4% increase in overall food prices for the month.
* **Social Security benefits:** Social Security recipients are set to receive a 2.5% cost-of-living adjustment (COLA) in 2025, reflecting the slowdown in inflation.
* **Global trade:** The World Trade Organization reported an uptick in global trade this year, citing falling inflation and easing monetary policy as contributing factors.

The latest inflation data paints a mixed picture, offering some signs of progress but also highlighting ongoing challenges. It remains to be seen how these developments will impact the Fed’s future rate decisions and the broader economic outlook.

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