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FILE – People shop at a grocery store on Aug. 14, 2024, in Rosemead, California. (Photo by FREDERIC J. BROWN/AFP via Getty Images)

Inflation fell in September to its lowest level since it began to soar more than three years ago.

Consumer prices rose 2.4% year-on-year last month, down from 2.5% in August and the smallest annual increase since February 2021. Prices also rose 0.2% in August-September, the same as the previous month The Ministry of Labor reported on Thursday.

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According to the Associated Press, “core prices,” which measure underlying inflation, remained high in September, reflecting rising costs for medical care, clothing, car insurance and airfares.

September data reflects inflation moving back toward the Federal Reserve’s 2 percent target, with the agency expected to cut its key interest rate further this year, the AP noted.

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Inflation was curbed by a decline in gas prices, which fell 4.1% in August-September.

Food prices rose 0.4% in September after a year of modest increases, although they are only 1.3% higher than a year earlier.

Food prices also rose nearly 25% from pre-pandemic levels. The AP noted that Donald Trump often cited the cost of bacon, which rose 30% to a high of $7.60 a pound in October 2022, as an example of the rise in the cost of living. Bacon prices have since dropped to $6.95.

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Food prices at restaurants rose 0.3% in September and have risen 3.9% over the past year. And clothing prices rose 1.1% from August to September and 1.8% year-on-year.

In September, core prices rose 3.3% from a year ago and 0.3% from August. The AP noted that economists are closely watching core prices, which typically provide a better indication of future inflation.

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The Census Bureau reported last month that inflation-adjusted median household income — the level at which half of households are above and half below — rose 4% in 2023, enough to push incomes back to their pre-pandemic peak bring to.

Additionally, the Social Security Administration announced Thursday that nearly 73 million recipients of Social Security and other benefits will receive a 2.5% cost-of-living adjustment in January. This is down from a 3.2% increase in 2024 and an 8.7% increase in 2023, underscoring a rise in inflation that has since declined.