US Inflation Comes in Soft, Building Case for More Fed Cuts (2)

A delayed snapshot of inflation in September came in softer than expected, potentially offering a path for the Federal Reserve to cut interest rates beyond next week’s meeting.

The core consumer price index, excluding the often volatile food and energy categories, increased 0.2% from August, according to Bureau of Labor Statistics data out Friday. That was the slowest pace in three months and restrained by the smallest increase in a key measure of housing costs since early 2021.

In the absence of other official reports during the government shutdown, the highly anticipated reading is a welcome surprise, particularly for ...