The personal consumption expenditures (PCE) price index rose 3% in October from a year ago, down from 3.4% in September.
“Core” PCE (which excludes the volatile food and energy categories) grew 3.5%, down from 3.7% from the month prior.
Month-over-month, core PCE rose 0.2% in October, down from 0.3% in September.
Today’s PCE release is in line with economists expectation and confirm the trend of the Consumer Price Index (CPI) on the 14th of November, which showed headline inflation declining at its lowest pace since September 2021.
Stock quotations have not been materially influenced by this news today (as it is in line with expectations), but they are on track for their best month this year as investors continued to bet on interest rate cuts.
Core PCE is watched closely by investors as it is the inflation measure most often mentioned by Jerome Powell.
Based on these results, analysts except that the FED will non increate interest rates at the December policy meeting, and start to reduce them since Spring 2024.