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Drop: US inflation fell to 2.4 percent in September, down from 2.5 percent in August
US inflation is at its lowest level in three and a half years, in the latest sign that the cost of living crisis that has gripped the world is being brought under control.
Inflation fell to 2.4 percent in September, down from 2.5 percent in August, cementing expectations that the U.S. Federal Reserve will not repeat September’s half-percentage point cut in interest rates in November. .
Last week’s US jobs numbers and comments from Federal Reserve chief Jerome Powell that he was in “no rush” to cut rates had already dampened hopes of another giant measure.
Lindsay James, investment strategist at Quilter Investors, said the drop in inflation “should be enough to proceed with a quarter-point rate cut.”
But “major risks remain,” including the conflict in the Middle East that has driven up oil prices.
“Cautious steps will be taken to reduce tariffs to a sustainable level,” he added.
In the eurozone, officials are signaling a likely third rate cut of the year, while the Bank of England is cautious, with chief economist Huw Pill warning against cuts “too deep or too fast.”
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