Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

U.S. inflation shows signs of easing with core PCE seeing lowest annual gain since April 2021

Published Nov 30, 2023 01:22PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The United States Commerce Department has revealed encouraging signs of easing inflation, with the core personal consumption expenditures (PCE) price index recording its lowest annual gain since April 2021. The core PCE, which strips out volatile food and energy prices, rose by a modest 0.2% in October and has seen an annual increase of 3.5%. This development is a positive step towards the Federal Reserve's long-term inflation target of 2%.

The comprehensive PCE index, which includes food and gas, remained unchanged from September to October but showed an annual climb of 3%. The report also noted a considerable slowdown in consumer spending in October, with expenditures increasing by just 0.2%, a stark contrast to September's more robust growth of 0.7%.

A Federal Reserve survey published on Wednesday indicated a general economic slowdown and more moderate job market conditions. Despite this, the Fed's strategy seems to be working, as the economy moves closer to the desired 2% inflation rate without tipping into recession, a scenario often referred to as a "soft landing."

The latest data also reveal mixed signals in the labor market, with initial jobless claims coming in below forecasts, yet continuing claims reaching their highest since late November of the previous year. Inflation trends are being closely monitored, especially after the Federal Reserve brought interest rates to their highest level in two decades.

Analysts and futures traders are now keenly awaiting the Federal Reserve's next moves. According to CME Group (NASDAQ:CME) data analysis, there is a heavy betting in the futures market on the Fed maintaining interest rates during their upcoming session in mid-December.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

U.S. inflation shows signs of easing with core PCE seeing lowest annual gain since April 2021
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email