A closely watched report on U.S. inflation showed that consumer price increases fell on an annual basis in September but “core prices” remained stable, according to the latest data from the Bureau of Labor Statistics released Thursday morning.

The consumer price index (CPI) rose 2.4% year-on-year in September, a slight slowdown compared to the 2.5% annual price increase in August. The annual increase was stronger than economists expected, an annual increase of 2.3%.

The index rose 0.2% from the previous month, matching August's rise and also larger than economists' expectation of a 0.1% rise.

On a “core” basis, which excludes the more volatile costs of food and gas, prices rose 0.3% in September from the previous month, beating economists' expectations of a rise of 0.2% and 3%, respectively .3% compared to the previous year. Core prices rose 0.3% month-on-month and 3.2% year-on-year in August.

Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and send her an email at [email protected].

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