UUS inflation hits 3-year low, paving way for Fed rate cuts

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UUS inflation hits 3-year low, paving way for Fed rate cuts
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For months, cooling inflation has provided gradual relief to America's consumers.

FILE - Shoppers pause in the produce section at a Walmart Superstore in Secaucus, New Jersey, July 11, 2024.

For months, cooling inflation has provided gradual relief to America's consumers, who were stung by the price surges that erupted three years ago, particularly for food, gas, rent and other necessities. Inflation peaked in mid-2022 at 9.1%, the highest rate in four decades. The latest inflation figures could inject themselves into the presidential race in its final weeks. Former President Donald Trump has heaped blame on Vice President Kamala Harris for the jump in inflation, which erupted in early 2021 as global supply chains seized up, causing severe shortages of parts and labor. Harris has proposed subsidies for home buyers and builders in an effort to ease housing costs and backs a federal ban on price-gouging for groceries.

Another potential driver of slower inflation is that the cost of new apartment leases has started to cool as a stream of newly built apartments have been completed.

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