The Bureau of Labor Statistics (BLS) reported Thursday that U.S. inflation fell again in September, for the third consecutive month, bringing its year-over-year rate to 8.2%, down one-tenth from August. 

Consumer prices rose four tenths, two tenths more than expected, which surprised investors and caused a market collapse, as fears grew that persistent inflation would provoke even more aggressive action by the Fed, mentioned CNN.

According to Infobae, Dow Jones index futures abruptly went from a rise of hundreds of points to a 400-point decline in a matter of seconds. Subsequently, in the first negotiations at the opening of the markets, the main indicator fell around 500 points (-1.7%), while the selective S&P 500 fell 2.8% and the technological Nasdaq fell 2.8%.

Inflation in the country is being closely watched as the Central Bank's efforts to control the problem push up the dollar and global borrowing costs.

The rate is currently well above the central bank's 2% target and the Fed may continue to raise interest rates in an attempt to cool rising prices.

"The Fed should react at the next meeting and continue to maintain a tight policy until there is some sign that inflation is under control," Neil Birrell, chief investment officer at Premier Miton Investors told the BBC. 

By making borrowing more expensive, the Fed hopes to reduce demand, particularly for big-ticket items such as cars and homes, and thus alleviate excessive price rises. 

Ahead of the upcoming November congressional elections, Chairman Joe Bien has sought to argue that the slowdown in economic activity is a healthy change from the surge in growth that followed the pandemic, pointing to solid job creation and low unemployment, BBC reported.