US Fed's favored inflation index slows to 2.1% in September

31/10/2024 Argaam


The Federal Reserve’s closely watched inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, rose in September as expected, backing a slower pace of rate cuts than the 50 basis points the central bank took in September.

 

The index showed prices rose 2.1% year-on-year (YoY) in September, in line with estimtaes, after soaring 2.3% in August, according to the US Commerce Department data released Thursday.

 

On a monthly basis, the index rose 0.2% in September, in line with Wall Street’s expectations.

 

The Core PCE price index, which strips out volatile food and energy items, rose 0.3% in September month-on-month (MoM) and was up 2.7% from a year earlier.

 

The index is slightly above the Fed’s 2% inflation target and comes about a week before the Nov. 5 presidential elections.

 

The data also indicated that wages and salaries went up 0.5% before adjustment as per inflation, supporting spending. Further, the growth in total disposable income increased by 0.3% in September.

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.