Fed’s Favored Inflation Gauge Cools to Slowest Pace Since May
- PCE price index less food and energy advanced 0.1% in November
- Spending supported by strongest gain in salaries since March
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The Federal Reserve’s preferred measure of underlying inflation was muted in November, a step in the right direction for policymakers looking to cut interest rates further in 2025.
The so-called core personal consumption expenditures price index, which excludes food and energy items, increased 0.1% from October and 2.8% from a year earlier, according to Bureau of Economic Analysis data out Friday. The monthly advance was the slowest since May.