ARLINGTON, Va.—On a seasonally adjusted basis, overall consumer prices were unchanged in September, with the Bureau of Labor Statistics reporting the overall consumer price index (CPI) grew 1.8% over the 12-month period.
NAFCU's Curt Long, in a new Macro Data Flash report, noted that although core PCE inflation "accelerated" to 1.8% in August it "remains below the FOMC's 2% target."
"Some members of that committee justified recent rate cuts as an effort to drive price growth and maintain credibility in the target," said Long, NAFCU's chief economist and vice president of research. "At any rate, inflation is certainly not a hindrance to further rate cuts regardless of the reason.
"Given rising political risks and the slowdown in the manufacturing sector, NAFCU expects another 25-point decline in the federal funds rate target at the end of October," Long added.
Core prices (excluding food and energy costs) increased 0.1% in September compared to the previous month. Year-over-year core CPI growth was 2.4%.
Energy prices fell 1.4% in September, continuing a downward trend from the previous month. From a year ago, energy prices were down 4.7%. Food price growth was up 1.8% on a year-over-year basis.