Inflation indicators recommended by the US Federal Reserve (Fed) show that price increases were slightly higher in October, which could prompt the central bank to take a more cautious stance at next month's interest rate cut meeting. Highly sexual.
The Core Personal Consumption Expenditures Price Index, a key measure of inflation that tracks average changes in the prices consumers pay for goods and services excluding food and energy, rose 2.8% last month from a year earlier, according to the Commerce Department. .
Core PCE rose 2.7% in September.
Compared to the previous month, core PCE increased by 0.3%. Both the annualized and month-over-month numbers were consistent with the consensus view among Wall Street investors.
Overall PCE increased by 2.3%. This is higher than the 2.1% reported in September.
Economists watch core prices closely because they usually provide a more accurate reading of the direction of inflation.
Inflation peaked at 7% in mid-2022, according to the Fed's recommended standards, and has since declined sharply. However, the annual core inflation rate has fluctuated between 2.6% and 2.8% since February.
Price increases for services such as apartment rent, restaurant meals, and car and home insurance remain high.
Wednesday's report also emphasized that Americans' incomes and spending remain healthy, a key reason the economy has continued to grow this year despite widespread fears of an economic slowdown. .
Incomes rose 0.6% from September to October, beating economists' expectations, while consumer spending rose a solid 0.4% last month.
But strong growth and stubborn inflation may prevent Fed officials from cutting key interest rates as quickly as they indicated at their last meeting in September.
Most economists now expect the central bank to cut interest rates by a quarter of a percentage point in December, then delay further cuts after that while assessing the impact of cuts made this year.
President-elect Donald Trump's victory could delay the Fed's interest rate cuts.
His proposals to cut taxes and ease government regulations could spur faster growth, but they could also overheat the economy and push up inflation.
And his threat to impose widespread tariffs, if carried out, is likely to push prices higher.
The Fed had signaled four rate cuts next year, but financial markets currently only expect two cuts.
with post wire
