CNN —Inflation has slowed further and is just a hair’s breadth from the Federal Reserve’s 2% target. The Personal Consumption Expenditures price index, which is the Fed’s preferred inflation gauge, showed prices rose 2.1% for the year ended in September, a slowdown from 2.3% in August, according to Commerce Department data released Thursday. The annual increase, which marks a fresh three-and-a-half-year low, fell right in line with what economists were expecting, according to FactSet consensus estimates. However, falling gas prices helped to keep the lid on any gains. Many states are seeing gas prices below $3 a gallon, a trend that’s expected to continue in the coming weeks as global supply eclipses demand.

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Persons: ” Olu Sonola Organizations: CNN, Inflation, Commerce Department, Federal Reserve, Fitch