Fed's Preferred PCE Inflation Eases to 2.4% in November, Below Expectations

Dec 20, 2024, 01:31 PM

US inflation, as measured by the Personal Consumption Expenditures (PCE) Price Index, rose 2.4% year-over-year in November, the highest since July 2024 but below the expected 2.5%. Core PCE, the Federal Reserve's preferred inflation gauge excluding food and energy, increased 2.8% year-over-year, slightly under the forecast of 2.9%. On a monthly basis, both headline and core PCE rose 0.1%, less than the anticipated 0.2%. The three-month annualized core PCE rate stood at 2.5%, indicating inflation is approaching the Fed's 2% target. The data suggests that inflation pressures in the US economy may be easing, which could influence the Federal Reserve's monetary policy decisions.