Inflation & Prices
Fed’s Favored Inflation Gauge Ends 2024 With a Muted Advance
- Core PCE prices rose 0.2% in December, in line with estimates
- Signs of consumer stress emerge in weaker incomes, less saving
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The Federal Reserve’s preferred measure of underlying inflation remained muted in December and real incomes were soft, which should support further reductions in interest rates this year.
The so-called core personal consumption expenditures price index, which excludes food and energy items, rose 0.2% from November and 2.8% from a year earlier, according to Bureau of Economic Analysis data out Friday.