US Inflation Falls To 2.1%, Almost Hitting Federal Reserve Target
The headline rate of inflation in the us was 2. 1% in september, according to new bureau of economic analysis figures released thursday — close to the federal. Inflation slowed to a yearly rate of 2. 1% september and almost hit the federal reserve's 2. 0% goal, based on the pce price index. But actually getting to the target might not happen. Annual inflation falls to 2. 1%, lowest since february 2021. The federal reserve is expected to continue lowering interest rates when it meets next week, one.
Price pressures in four decades, it's hard for investors to adjust to the notion that inflation could soon undershoot the federal reserve's. Economists see us inflation reaching the federal reserve’s target early next year while the unemployment rate picks up slightly, closely following the central bank’s own. The commerce department reported that prices rose just 2. 1% in september from a year earlier, down from a 2. 3% rise in august. That is barely above the fed’s 2% inflation. Fed officials target inflation at a 2% annual rate, a level it has not achieved since february 2021. The september headline rate was down 0. 2 percentage point from august.