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US Core PCE in September Falls Short of Expectations, Greenlights Further Fed Rate Cuts
Summary: According to reports from FXStreet, a key inflation indicator released by the US Department of Commerce on Friday showed that the inflation rate in September was lower than expected. This delayed report, due to the government shutdown, gives further approval for the Fed to cut rates. The core PCE price index, excluding volatile food and ...
According to reports from FXStreet, a key inflation indicator released by the US Department of Commerce on Friday showed that the inflation rate in September was lower than expected. This delayed report, due to the government shutdown, gives further approval for the Fed to cut rates. The core PCE price index, excluding volatile food and energy prices, rose by 0.2% monthly and 2.8% annually, with the monthly rate meeting general expectations but the annual rate falling 0.1 percentage point below expectations. Additionally, based on data from the Bureau of Economic Analysis of the US Department of Commerce, overall personal consumption expenditures rose by 0.3% monthly, with an annual inflation rate of 2.8%. Both of these figures align with expectations. Fed officials use the PCE price index as a key policy tool for measuring inflation. While officials consider both overall and core data, they generally view core data as a better indicator of long-term inflation trends. This report was delayed for several weeks due to the government shutdown, during which all data collection and economic reporting were suspended.
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Link: US Core PCE in September Falls Short of Expectations, Greenlights Further Fed Rate Cuts [Copy]
