US Inflation Rate Seen Nearing Fed’s 2% Goal Next Year in CBO Forecast
- PCE inflation forecast to slow in 2024 as price pressures ease
- Economic growth, labor market slow in 2024, CBO report shows
The agency expects personal consumption expenditures — the Fed’s preferred measure of inflation — cooling to 2.1% in 2024, according to the CBO’s semiannual forecast published Friday.
Photographer: Stephanie Keith/BloombergThe US inflation rate is seen easing closer to the Federal Reserve’s 2% target next year in the latest forecast from the Congressional Budget Office, as economic growth and labor market activity cools.
The agency expects personal consumption expenditures — the Fed’s preferred measure of inflation — cooling to 2.1% in 2024, according to the CBO’s semiannual forecast published Friday. Excluding energy and food costs, the gauge is set to ease to 2.4% from this year and hit 2.3% by 2025, according to the data, which incorporates economic developments through Dec. 5.