Yahoo news
Inflation continued to cool in October, according to the Federal Reserve's favorite price index.
The Personal Consumption Expenditures (PCE) Index grew 3% year over year for the month, down from 3.4% in September and in line with expectations. "Core" PCE, which excludes the volatile food and energy categories, grew 3.5%, down from 3.7% from the month prior and also in line with what economists surveyed by Bloomberg had expected.
Month-over-month, core PCE rose 0.2% in October, down from 0.3% in September.
Core PCE is the inflation measure most often mentioned by Federal Reserve Chair Jerome Powell and therefore is watched closely by investors.
"For the Fed, fresh signs of softer inflation and consumer demand confirm it is well positioned to remain on hold at the December policy meeting," EY senior economist Lydia Boussour wrote in a research note on Thursday. "We reiterate our long-standing view that the Fed’s tightening cycle is likely complete. With the Fed’s favored inflation gauge — core PCE inflation — likely falling below 2.5% in the spring, we expected the first Fed rate cut in June 2024
