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Fed's preferred inflation gauge slows annually in October

Published Nov 30, 2023 08:43AM ET Updated Nov 30, 2023 09:24AM ET
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Investing.com -- The Federal Reserve's preferred inflation gauge rose at a slower rate on an annual basis in October compared to the prior month, in the latest sign that the central bank's long-standing campaign of interest rate hikes may be working to corral price growth.

Last month's so-called "core" personal consumption expenditures (PCE) price index, which strips out volatile items like food and fuel, eased to 3.5% annually and 0.2% monthly, in line with estimates. In September, they had increased by 3.7% and 0.3%, respectively.

"After fears of 'sticky' and 'persistent' inflation, the month to month slowing in the core [PCE] readings is encouraging," said Kathy Jones, Chief Fixed Income Strategist at Charles Schwab (NYSE:SCHW), in a post on social media platform X.

The overall figure rose by 3.0% annually, decelerating from 3.4% in September thanks in large part to a drop in energy prices. On a monthly basis, the measure stood at 0.0%, down from an uptick of 0.4% in the prior month. Economists expected readings of 3.0% year-on-year and 0.1% month-on-month.

The data could help determine how Fed officials will calibrate interest rates in the coming months. The central bank is widely tipped to leave rates at a range of 5.25% to 5.50% at its meeting next month, although some policymakers have hinted that a pivot away from this unprecedentedly tight stance may be coming soon.

Earlier this week, Fed Governor Christopher Waller, a typically hawkish voice, suggested that "we could start lowering the policy rate" if inflation continues to slow for "several more months." The comments bolstered expectations that the Fed may slash rates as soon as May next year.

Fed's preferred inflation gauge slows annually in October
 

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Comments (15)
Tom Cur
Tom Cur Dec 01, 2023 7:25AM ET
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I guess elitevand goverment officials do not feel what people feel when they go to grocery store. We continue paying more and more everymonth even if it increased in a slower rate. The news should be when it goes down to the level when this administration took office. It may never go back to it do it to their failed policies printing and printing
Barry Nickerson
Subbuilder Dec 01, 2023 6:24AM ET
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Whole pig prices are at a 3 year low, but I find the stores still charging 25% more for pork and ham products than at this time last year.  All due to a 3.5% inflation rate.
Rex Wudi
Rex Wudi Dec 01, 2023 12:21AM ET
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how many % of your monthly income do you spend for food and energy
Casador Del Oso
Casador Del Oso Nov 30, 2023 2:15PM ET
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Already sky high prices are still going up only at a slower rate. Only with deflation do we see prices dropping.
Symmetries Research
SymResearch Nov 30, 2023 10:47AM ET
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A common man is finding it hard to afford home, food & energy. Conveniently, these metrics are avoided. Then, what exactly is the point?! We need food everyday. I don't understand why there is so much gap between what pain a man is feeling and these numbers! Extremely upsetting.
John Bozanich
John Bozanich Nov 30, 2023 10:47AM ET
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I here you.. The Fed is a nest of Scoundrels playing God with the economy for the benefit of the elites.
Stephen Fa
Stephen Fa Nov 30, 2023 10:47AM ET
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John Bozanich The Fed has little to due with consumer prices except for cost of debt (credit).
Stephen Fa
Stephen Fa Nov 30, 2023 10:47AM ET
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Brad Albright
Brad Albright Nov 30, 2023 10:39AM ET
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Damn you Joe Biden!
Maximus Maximus
Maximus Maximus Nov 30, 2023 10:10AM ET
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Bidenomics is working. soft landing ahead..
Show previous replies (5)
tony gal
tony gal Nov 30, 2023 10:10AM ET
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Robert Palumbo you're a føøl.
tony gal
tony gal Nov 30, 2023 10:10AM ET
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I read nothing past your crime syndicate claim, why should anyone trust what you have to say afterwards?
Ac Tektrader
Ac Tektrader Nov 30, 2023 10:10AM ET
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you've got to be kidding Robert that is a physically impossible the ground work for all these problems was laid down by the policies and incompetent actions of the previous Republican Administration.
Ac Tektrader
Ac Tektrader Nov 30, 2023 10:10AM ET
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tony, the fools are the odviiously ignorant fools who follow a proven crook a liar and a man proven to be dangerous to American democracy and American national. Donald Trump.
Ac Tektrader
Ac Tektrader Nov 30, 2023 10:10AM ET
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tony, the only fools are the ignorant followers of a Proven crook ,liar, sexual molester, and a proven threat to America's democracy and nations security, Donald Trump.
Casador Del Oso
Casador Del Oso Nov 30, 2023 9:27AM ET
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Buy. Buy. Buy. LOL
Petet Larkar
Petet Larkar Nov 30, 2023 9:04AM ET
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adek emi
adek emi Nov 30, 2023 8:59AM ET
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high rate like now will curb inflation although slowly
 
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