The Consumer Price Index rose 2.4% in the 12-month period that ended in September, while a gauge that strips out food and energy prices was 3.3%, the government said Thursday.

Why it matters: The September CPI report is the latest data indicating that the inflation crisis is in the rear view mirror, with few signs of price pressures reigniting.

By the numbers: The September CPI figure, the smallest increase since February 2021, compared to the 2.5% increase in the year ending in August.

• Core CPI, meanwhile, ticked up from August.
• On a monthly basis, the CPI rose 0.2%, the same as the two prior months. Core CPI—excluding food and energy—also held at 0.3%.

What to watch: The Federal Reserve, once squarely focused on cooling inflation, has pivoted its focus to the labor market.

• The central bank cut interest rates by a half-percentage point last month—the first time officials lowered rates since 2020—with the intention to protect the job market that looked to be wobbling.
• Some Fed officials are still wary about inflation getting stuck below the Fed’s 2% target and keeping a close watch on the […]