Inflation Ticks Down Less Than Expected As Fears Of Hot Economy Grow

Inflation fell slightly in September amid fears of a hotter-than-expected economy following strong job gains in the month prior, according to the latest Bureau of Labor Statistics (BLS) release Thursday.

The consumer price index (CPI), a broad measure of the price of everyday goods, increased 2.4% on an annual basis in September and rose 0.2% month-over-month, compared to 2.5% in August, less than the 2.3% rate that was expected, according to the BLS. Core CPI, which excludes the volatile categories of energy and food, rose 3.3% year-over-year in September, compared to 3.2% in August.

Meanwhile, September job growth far exceeded economists’ expectations of 150,000 jobs, with the U.S. economy adding 254,000 nonfarm payroll jobs and the unemployment rate ticking down to 4.1%. The strong jobs numbers reduced fears of an economic slowdown but revived the possibility of a “no landing” scenario in which inflation resurges and the Federal Reserve runs out of room to lower interest rates, particularly since it followed the Fed’s 0.5% September rate cut, according