In mid-2024, the US Consumer Price Index (CPI) showed inflation coming. Consumers experienced a slight price increase of only 0.2% on a month-on-month basis. Core inflation, excluding food and energy, stayed at 3.2%. This softer inflation gives shoppers a little more relief compared to previous months. Let’s learn more about US CPI Data September 2024.

Key Facts

• Rent increased by 7.8% year-over-year, adding pressure on household budgets.
• Health insurance prices plunged 28.8% in August, which brought some relief to consumers.
• Energy prices dipped 12.5% year-over-year, but still fluctuating.
• Food prices rose by 4.3%, keeping grocery bills high.
• Used car prices fell by 6.6%, offering more affordable transportation options.

Analysis of US CPI Data September 2024

September US Consumer Price Index

Looking ahead, September’s CPI data will play a crucial role in the Federal Reserve’s rate decision. Analysts expect core inflation to stay unchanged at 3.2%, but overall inflation might edge higher. Therefore, any major surprises in these numbers could shake market expectations, especially as investors anticipate the next Federal Reserve (Fed) move.

August US Consumer Price Index Dip

In July/2024, the US CPI inflation was 2.9%. But, later in August/2024, CPI dropped by 0.4%. However, the core inflation of 3.2% remained stable and excluded the food and energy sectors. Month-on-month, prices rose just 0.2%, giving consumers a small break from steeper increases.

Market Reaction Increase in Rent and Energy Bills

Markets immediately responded to the softer inflation. The US Dollar price index vs EUR erased gains, as USD traded flat around 101.62. Despite the drop in inflation, several sectors including, housing still showed higher price pressures. Real wages, however, saw a positive shift, with hourly earnings growing faster than inflation.

Fed meeting September 2024

The upcoming Fed meeting on September 17-18 has already priced in a 25-basis point rate cut. Traders anticipate an 85% chance of this rate cut occurrence, while a larger Fed rate cut remains unlikely unless inflation drops sharply. Hence, investors will keep a close eye to review if the Fed sticks to its plan!

Stock Market Trends Stays Steady

Stock markets have been unpredictable but relatively stable, with the S&P-500 up by 14.70% YTD. NASDAQ and the DOW-30 also saw positive growth, which will further help in optimizing around the potential rate cuts.

Consumer Struggles Continue Amid Inflation Rate

Despite cooling inflation, many consumers still feel the pinch. Sectors like car insurance and rent continue to rise, making everyday life more expensive for many Americans. Inflation may have eased, but lingering price pressures keep financial stress high for those struggling with higher costs in essential areas.

US CPI Data September 2024 Final Verdict

Lower inflation may ease some costs, but core inflation at 3.2% raises concerns. Unpredictable price rises in sectors like housing could worry both markets and everyday shoppers. Amid this situation, the Federal Reserve’s rate decision will impact consumers, finance, and the stock market. For more interesting finance-based stories, gaming, wordplay, crossword puzzles, Stock Markets, Etc., make sure to access Financereview.Org