Report: Inflation hits lowest point since 2021

An inflation gauge watched by the Federal Reserve has hit its lowest point since early 2021, dropping to near pre-pandemic prices. 

With prices hitting an average of 20% higher vs four years ago and shrinkflation on the rise, this is good news for consumers hopeful for a better economy, as well as good news for retailers who have faced a lack of loyalty as consumers shop around for the best deals.

While inflation has been a hot button issue in the lead-up to the U.S. general election, the Commerce Department reported that the price increases were just 2.1% in September, an improvement upon the 2.3% rise in August. While this is still just above the Federal Reserve’s 2% inflation target, it’s in line with 2018, before the global COVID-19 pandemic caused prices to skyrocket.

Core prices rose 2.7% year-over-year from last September, and 0.3% month-over-month from August to September, triple the 0.1% rate from July to August. If core prices remain elevated past the rate that the Federal Reserve would like, it might lead the central bank to slow its pace of rate cuts. 

As a whole, national inflation has been heavily discussed on the political stage — while Vice President Kamala Harris promises to help families by tackling price gouging at grocery stores, former President Donald Trump said that if elected, inflation would “vanish completely.” 
Despite his promises, economists have said that inflation would actually worsen under Trump’s economic policies, with his proposed tariffs on all imported goods. In light of this, businesses are preparing to raise their prices even further, passing the buck onto consumers.

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