In what is a massively important metric for economic standing
of the country, US inflation figures fell to 2.4% in September
2024. Indeed, the latest US consumer price index (CPI) report shows inflation falling even closer to the Federal Reserve's target.
The data also shows a second consecutive month of decline. In
August, inflation reached 2.5% and was essential to inform the
the Fed's most recent interest rate decision. The promising drop in
inflation prompted the central bank to cut rates for the first time in four years.
US inflation falls further, falls closer to Fed's 2% target
The United States economy, like most of the world, has been
difficult to work against concerns of a hard landing. With the
inflation being complicated to defend against, the Federal Reserve adopted a
tightening campaign that lasted more than a year. In fact, the Fed raised
rates 11 times between 2022 and 2023. However, the fruits of this campaign
seem to be arriving now.
In a rather optimistic sign, the
US inflation fell to 2.4% in September 2024. The drop is
significant, but still came in above the 2.3% mark that the
experts expected. However, the movement shows progress
notable in bringing inflation closer to the Fed's 2% target.
Analysts have questioned whether the number could fall below that number.
2%. However, the recent turnaround has to be encouraging and informative
the possibility of this happening. With oil prices rising, in
However, it appears that further declines towards the target rate would be a
stretching.
Now, all eyes are back on the Federal
Reserve. Specifically, keep an eye on how they respond to the value of the
inflation. Earlier this week, Fed Chair Adriana Kugler
expressed support for further interest rate cuts if inflation
continue to decline. Currently, the market expects another half-year cut
percentage point in November, similar to the September cuts.
