Price increases have fallen to their lowest level in more than three years in the latest reading of the Federal Reserve’s preferred inflation gauge, strengthening the outlook for more interest rate cuts to come.

The personal consumption expenditures (PCE) price index slid to a 2.1-percent annual increase in September, down from 2.3 percent in August and 2.5 percent in July, according to the Commerce Department.

Prices for goods decreased 1.2 percent on the month and prices for energy decreased 8.1 percent. The national average price for a gallon of gasoline is down to $3.13, according to auto service provider AAA. A year ago, it was $3.47.

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