US inflation may have risen only modestly last month as Fed officials signal no rate hike is likely

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Inflation in the United States likely eased again last month, though the decline might have slowed since summer, a reminder that the outsize price pressures of the past two years will take more time to cool. Thursday’s consumer inflation data could bolster — or undercut — the growing belief that the Federal Reserve can tame inflation without causing a recession. Hiring surged unexpectedly in September, the government reported last week, and job gains in July and August were also revised higher. More people earning paychecks should help fuel consumer spending, the principal driver of the economy. Yet the report also showed that wage growth slowed — a trend that, if it continues, should help ease inflationary pressures.