2024 Sees Significant Drop in US Inflation for the First Time in Years

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Image Credit: Pexels/ Engin Akyurt

It appears that the US is facing low-level inflation ahead of the election which is one month away. Experts say inflation has dropped to its lowest compared to what it was three years ago. Apart from the recent boost in employment rate, consumer prices also received a boost. August witnessed it at 2.5%, while it dropped to 2.4% in September. According to the Labor Department, the new percentage was concluded, following a monthly survey from August to September. They confirmed that within these months prices increased by 0.2%.

US Inflation Declines: First Major Reduction in Over Three Years

While this pricing might have affected regular feeding and energy consumption, it is not reflected in core prices. In September the reason for the underlying inflation continued to thrive. This is because of the rising cost of airline fees, healthcare bills, and auto insurance. These prices rose to 3.3% last month and in August it was fixed at 0.3%. Amid the hope derived from consumer pricing, economists are concerned about the core prices which leave hints for future inflation.

A UBS Investment Bank economy expert Alan Detmeister has been able to sight a future problem. He explained auto services led to an incredibly high inflation rate last month. Unfortunately, he posits that there is set to be an increase in the coming months.

But there seems to be a silver lining in all of this. Detmeister’s position is that items like clothing and air fees that increased in the previous months are set to come down. This doesn’t seem like a myth as rental prices seem to be coming down. In September fees paid for apartment rentals weren’t as high as before. Although it is yet to reach an all-time low, the pricing is slowly reducing.

#Clique, what are your thoughts?

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