From CNBC: 2024-10-10 10:52:23

In September, inflation fell as gasoline prices and other factors eased, with the Consumer Price Index up 2.4% from last year, the smallest since February 2021. Economists noted trouble spots, but overall, inflation is still heading towards the 2% target set by policymakers.

Annual food inflation has been “fairly tame,” with grocery prices up 1.3% since September 2023. Wage growth slowing has reduced labor costs, while grocery stores offer more incentives. Despite a recent jump in grocery inflation, economists expect these trends to stabilize in the future.

Housing inflation has been a major obstacle in reaching target inflation levels, with shelter inflation stubbornly high. However, recent data shows a decline in shelter inflation, which economists see as a positive sign for overall inflation levels.

Services inflation, heavily impacted by shelter costs, has been slow to recede. Categories like motor vehicle insurance continue to see price increases, as insurers adjust rates following changes in other parts of the economy. Economists expect services inflation to take longer to stabilize compared to goods inflation.

Read more: Here’s the inflation breakdown for September 2024 — in one chart