U.S. inflation eases but still higher than expected | Business News

In the 12 months through September, US inflation fell to 8.2%.

The U.S. Bureau of Labor Statistics (BLS) said the consumer price index (CPI), which measures inflation, fell from 8.3% in the year to August.

The increase was driven by increases in housing, food and healthcare costs. Excluding food and energy costs, inflation was 6.6% in the 12 months to September.

It was the third straight month of declines in inflation, but a Reuters poll of economists predicted it would fall further to 8.1 percent.

Inflation remains high and the Fed is more likely to raise interest rates next month, even more than expected, in an effort to bring inflation down to its 2% target.

It raised interest rates to 3% to 3.25% in September, the third straight increase of 0.75 percentage points.

Higher interest rates will spark fears of recession in the U.S. and around the world as borrowing costs rise further.

such a hike United Nations warns.

The news will deal a blow to President Joe Biden. He had hoped to rein in inflation as the U.S. midterm elections approached, making life more expensive for American voters.

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