This Week In The Economy: US September CPI Data Shows Inflation Down But Not Out, Fed September Rate Cut Decision Far From Unanimous

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

U.S. Inflation Rate Dips Again, But Core CPI Remains Well Above Fed Target

The Bureau of Labor Statistics reported this week that the speed of consumer price increases slowed down again in September but, when food and energy are excluded, is still at a level that is noticeably above the Federal Reserve’s 2% objective.

The Consumer Price Index increased 0.2% on a monthly basis, the same increase as in August and July. Over the last 12 months, prices increased 2.4%, the smallest rise since February 2021. Core CPI rose 0.3% in September, as it did the preceding month…