In what is a massively important metric for the country’s economic standing, US inflation figures have fallen to 2.4% in September 2024. Indeed, the latest US Consumer Price Index (CPI) report shows that inflation is falling even closer in line with the Federal Reserve’s target.
The data also shows a second straight month of decline. In August, inflation came in at 2.5% and was key in informing the Fed’s most recent interest rate decision. The promising fall of inflation had led the central bank to cut rates for the first time in four years.
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US Inflation Falls Yet Again, Drops Closer to Fed’s 2% Target
The United States economy, like most of the world, has been hard at work fighting off concerns of a hard landing. With inflation proving tricky to defend against, the Federal Reserve adopted a tightening campaign that lasted more than a year. Indeed, the Fed raised rates 11 times between 2022 and 2023. Yet, the fruits of that campaign look to be arriving now.
In a rather optimistic sign, US inflation has fallen to 2.4% in September 2024. The fall is significant, but still came in higher than the 2.3% mark that experts had been expecting. However, the move shows notable progress in bringing inflation closer toward the Fed’s 2% target.
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Analysts have questioned whether the figure can drop below that 2% number. Yet, the recent turnaround has to be encouraging, and inform the possibility of that taking place. With oil prices rising, however, it does appear as though further declines toward the target rate would be a stretch.
Now, all eyes are back on the Federal Reserve. Specifically, eyeing how they respond to the inflation figure. Earlier this week, Fed Governor Adriana Kugler voiced her support for further interest rate cuts if inflation continues to ease. Currently, the market expects another half-percentage point cut in November, similar to the September cuts.