LeeCoppock.com

The latest Consumer Price Index data release from the Bureau of Labor Statistics shows prices rose 0.3% in September, putting the 12-month inflation rate at 3.0% — roughly flat compared to August’s 2.9%. In other words, inflation’s not racing downhill anymore, but it’s also not climbing like it did in 2022. Gasoline once again stole the spotlight, jumping 4.1% in a single month, helped along by higher energy commodities and travel costs. Meanwhile, food prices calmed a little, with grocery prices edging up just 0.3%. Shelter inflation also eased slightly, with the rent and owners’ equivalent rent measures growing at their slowest pace since early 2021 — a sign that housing costs might finally be getting the memo.

Zooming out, the 3.0% annual inflation rate represents a return to something close to normal, though still above the Federal Reserve’s long-term 2% target. After peaking at over 9% in mid-2022, annual CPI has steadily cooled — but energy and housing remain the two stubborn holdouts, occasionally re-inflating like a bad group project that just won’t end. The big picture? Prices are still rising, just not fast enough to set off alarms — unless, of course, you’re filling your tank, buying airline tickets, or grading an econ midterm about “transitory inflation.”