US inflation falls but still higher than expected

Business

US inflation dropped to 8.2% over the 12 months to September.

The US Bureau of Labor Statistics (BLS) said the consumer price index (CPI), the measure of inflation, was down from 8.3% in the year to August.

A greater fall to 8.1% had been predicted by a Reuters poll of economists.

The US central bank increased interest rates from 3% to 3.25% in September as part of its efforts to bring inflation down to its 2% target.

Those hikes increased the threat of a US recession and had been warned against by the UN.

Higher interest rates mean an increased cost of borrowing.