Annual inflation rate drops to 2.4 percent, lowest since February 2021

Consumer prices rose slightly in September as the Federal Reserve prepared to cut interest rates and ease off the brakes of the U.S. economy.

The consumer price index, a closely watched gauge of inflation, rose 0.2 percent in September and 2.4 percent over the previous 12 months, the Bureau of Labor Statistics announced Thursday. The annual inflation rate was the lowest since February 2021.

Economists expected prices to rise 0.1 percent in September and 2.3 percent annually...