Detroit City Wire

Inflation in the United States decreased last month to its lowest level since early 2021. Consumer prices increased by 2.4% in September compared to a year earlier, slightly down from August's 2.5%, according to the Labor Department's report on Thursday. On a monthly basis, prices rose by 0.2% from August to September, consistent with the previous month's increase.

Excluding food and energy costs, "core" prices remained elevated in September due to rising costs for medical care and car insurance. Core prices were up 3.3% from the previous year and 0.3% from August, offering insight into future inflation trends.

The recent inflation data follows a positive jobs report indicating accelerated hiring in September and a drop in unemployment from 4.2% to 4.1%. Additionally, the economy grew at a solid annual rate of 3% during the April-June quarter, with similar growth expected for July-September.

Cooling inflation and economic growth could affect former President Donald Trump's perceived advantage on economic issues in the presidential campaign. Some polls show Vice President Kamala Harris closing the gap with Trump regarding who would best handle the economy.

Despite these improvements, many voters still view the economy negatively due to cumulative price increases over three years.

Last week's strong jobs report has raised concerns at the Federal Reserve about whether the economy is cooling enough to slow inflation effectively. The Fed reduced its key rate by half a point last month, marking its first cut in four years, and indicated plans for two additional quarter-point cuts in November and December.