Inflation Trends - September CPI year-on-year growth rose to 3%, slightly below market expectations[2] - Core CPI month-on-month growth decreased from 0.35% to 0.23%, also below expectations[5] - Energy prices saw a month-on-month increase from 0.7% to 1.5%, with gasoline prices rebounding from 1.9% to 4.1%[5] Federal Reserve Outlook - The Federal Reserve is expected to lower interest rates once more by the end of the year, targeting a federal funds rate of 3.75%-4%[2] - Further rate cuts are anticipated next year, potentially bringing the rate down to 3.25%-3.5%[2] Housing and Services Impact - Rent inflation significantly declined, with the month-on-month growth rate dropping from 0.36% to 0.15%, the lowest since early 2021[5] - Other service inflation remains high, with travel services like lodging and airfare showing strong demand[5] Future Projections - October CPI month-on-month growth is expected to decrease to 0.2%, maintaining a year-on-year growth of 3%[5] - The potential for significant deviations in CPI data due to reduced sample collection is noted, increasing uncertainty around future rate cuts[2]