The Federal Reserve’s key inflation measure came in below expectations for November, delivering welcome relief Friday to markets after the central bank warned earlier this week of mounting price pressures heading into the new year.
The Personal Consumption Expenditures price index grew by 2.4% in November 2024 on a year-over-year basis, up from 2.3% in October, according to government data. The figure missed economist forecasts of 2.5%, yet it marked the second consecutive monthly increase in this key inflation measure.
On a monthly basis, the PCE index advanced 0.1%, decelerating from October’s 0.2%.
Excluding volatile components like food and energy, core PCE held steady at 2.8% year-over-year, below expectations of 2.9%. On a monthly basis, core PCE growth slowed to 0.1%, down from the prior 0.3% and below expectations of 0.2%.
In tandem with the inflation data, the report also showed that personal income rose 0.3% month-over-month in November, …
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