U.S. Inflation Cools to 3% in September, but Main Street Still Feels the Squeeze
Stocks rallied on Friday as U.S. inflation data came in slightly cooler than expected, with the headline Consumer Price Index rising 3% year-over-year in September—just below Wall Street's 3.1% forecast. Core inflation also edged down to 3% from 3.1% in August, showing tentative progress in stubborn categories like housing and services.
Yet the relief felt in financial markets hasn't translated to Main Street. Households continue grappling with elevated costs for groceries, utilities, and essential services, creating a disconnect between trading floor Optimism and economic reality on the ground.
Analysts caution against premature celebration. "The numbers are better than expected but still well above the Fed's target," said George Bory of Allspring Global Investments. RSM's Joe Brusuelas noted uneven progress, with services still advancing at a 3.6% annual clip—a reminder that the inflation fight isn't over.
