US EditionCore inflation rate watched by Fed hit 2.8%, delayed September data shows, lower than expected
Core inflation held steady at 2.8% in September, matching forecasts after a five-week delay caused by the government shutdown, supporting expectations for a Fed rate cut.
- The delayed September report showed the Commerce Department reported PCE rose 0.3% month-to-month and 2.8% year-over-year, while core PCE gained 0.2% monthly and 2.8% annually.
- Core measures matter because core PCE strips out volatile food and energy, which the Federal Reserve uses to gauge inflation above its 2% target for persistent price trends.
- Personal income data showed personal incomes rose 0.4% in September for the second straight month while consumer spending slowed and was flat after inflation, despite online sales surging 7.7% post-Thanksgiving.
- Traders responded by pricing roughly 87% odds of a rate cut into a 3.5%–3.75% range, while analysts said stable inflation readings support the U.S. dollar.
- The shutdown left the Fed with less timely data, and the caused data blackout complicated Federal Reserve officials' information, while policymakers must balance fighting inflation and responding to weaker hiring.
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90 Articles
Inflation Lower than Expected, New BEA Report Reveals, Sparking Fed Rate-Cut Hopes
Hopes that the Federal Reserve will cut interest rates when it meets next week were bolstered Friday when the U.S. Bureau of Economic Analysis (BEA) released a key inflation measure that came in better than analysts had expected. The BEA report for September, which had been delayed by the federal government shutdown, shows that the personal consumption expenditure (PCE) price index increased 0.3% from August. From the same month one year ago, th…
Core inflation rate hit 2.8 percent: September data
The Commerce Department reported Friday that core prices increased by 2.8 percent compared to September of last year, excluding food and energy costs. The monthly rise in costs was measured at 0.2 percent. In total, consumer spending increased by $65.1 billion. Most of the growth came from service expenditures, including a 15.4 percent increase in…
Boston 25 News
Fed's preferred inflation gauge changed little in September with price gains muted
The Federal Reserve’s preferred measure of inflation slowed a bit in September, likely easing the way to a widely expected interest rate cut by the central bank next week
Associated Press News
Fed's preferred inflation gauge stayed elevated in September as spending weakened
The Federal Reserve’s preferred measure of inflation slowed a bit in September, likely easing the way to a widely expected interest rate cut by the central bank next week.
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