Inflation in the United States remained stable at 3.7% in the annualized measurement as of September, according to the consumer price index (CPI) published by the Department of Labor. Although the price increase remained constant, there were signs of moderation for the first time since May in the monthly measurement, with a variation of 0.4% compared to 0.6% in August. This annual figure disappointed analysts, who expected a drop to 3.6%.
When food and energy prices, the most volatile, are excluded, core inflation fell in September in the annualized measurement, standing at 4.1%. Despite still-high inflation rates, experts observe a progressive improvement. Rubeela Farooqi, chief economist at HFE, believes that this data could influence the stability of interest rates during the next Federal Reserve meeting, which is scheduled for late October and early November.
The Federal Reserve targets annual inflation of 2% and has been raising its interest rates to counter upward pressures on prices. Currently, reference rates are in the range of 5.25–5.50%. Most Fed officials believe an additional increase this year would be appropriate to keep a lid on inflation. However, tighter monetary conditions could impact small businesses like Sweet Mama’s Mambo Sauce, which are forced to consider price increases due to rising ingredient costs and other operating expenses.