The Federal Reserve’s preferred inflation gauge showed a modest slowdown in price increases for November, but inflation remains resilient, complicating the central bank’s efforts to meet its 2% target. The latest data underscores the ongoing challenges the Fed faces in controlling inflation despite a year of aggressive monetary tightening.
Released early Friday by the Bureau of Economic Analysis (BEA), the core Personal Consumption Expenditures (PCE) index—stripping out volatile food and energy costs—rose by 0.1% from the prior month. This marks a deceleration from October’s 0.3% increase and came in below Wall Street expectations of 0.2%. However, year-over-year core PCE held steady at 2.8%, matching October’s increase and slightly under economists’ forecasts of 2.9%.
Meanwhile, overall PCE inflation ticked up slightly on an annual basis to 2.4%, compared to 2.3% in October. This result fell just below the anticipated 2.5% increase.
Mixed Inflation Sig ...
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