Inflation Picks Up, According to Fed’s Preferred Gauge

Last week’s core PCE numbers support comments by Fed officials that there’s no rush to cut interest rates so long as the labor market remains healthy and the economy continues to power ahead.

By Augusta Saraiva | December 03, 2024 at 03:58 PM

The Federal Reserve’s preferred measure of underlying inflation accelerated in October from a year ago, helping explain policymakers’ more cautious approach to lowering interest rates.

The so-called core personal consumption expenditures (PCE) price index, which strips out volatile food and energy items, increased 2.8 percent from October of 2023 to last month, and it rose 0.3 percent from September to October of this year, according to Bureau of Economic Analysis (BEA) data out last Wednesday. A good part of that acceleration was due to the impact of higher stock prices on the calculation.

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Inflation Picks Up, According to Fed’s Preferred Gauge

Last week’s core PCE numbers support comments by Fed officials that there’s no rush to cut interest rates so long as the labor market remains healthy and the economy continues to power ahead.

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