Inflation slowed slightly in September, report says

The U.S. Bureau of Labor Statistics reported Thursday that the rate of inflation slowed to 2.4 percent in September, a three-year low and a tenth of a point under the previous month. Inflation sat at nearly 3 percent in July. The drop comes after the Federal Reserve reduced its key interest rates by half a point last month—the first time it cut its rates in more than two years. The central bank’s interest rates now are around 4.75-5 percent.

So what’s the price breakdown, according to this report? Americans spent less in the areas of recreation and communication services, according to the report. However, they spent more on shelter, car insurance, plane tickets, hospital visits, and clothes. Meanwhile, food and grocery prices increased across the board. Americans also spent more money at restaurants and on fast food in the past year, the bureau said.

Dig deeper: Read Leo Briceno’s report about how the Federal Reserve has shifted its focus from inflation to the job market.