Key Fed inflation rate hits 2.1% in September, as expected [View all]
Source: CNBC
Published Thu, Oct 31 2024 8:36 AM EDT Updated 8 Min Ago
Inflation increased slightly in September and moved closer to the Federal Reserve’s target, according to a Commerce Department report Thursday. The personal consumption expenditures price index showed a seasonally adjusted 0.2% increase for the month, with the 12-month inflation rate at 2.1%, both in line with Dow Jones estimates.
The Fed uses the PCE reading as its primary inflation gauge, though policymakers also follow a variety of other indicators. Fed officials target inflation at a 2% annual rate, a level it has not achieved since February 2021. The September headline rate was down 0.2 percentage point from August.
Though the headline number showed the central bank nearing its goal, the inflation rate was at 2.7% excluding food and energy, after the so-called core measure increased 0.3% on a monthly basis. The annual rate was 0.1 percentage point higher than forecast but the same as in August.
The move in inflation was tilted towards services prices, which increased 0.3%, while goods prices decreased 0.1%, the fourth outright deflation figure in the past five months for the category. Housing prices eased off their pace, rising 0.3%. Energy goods and services fell 2%.
Read more: https://www.cnbc.com/2024/10/31/pce-inflation-september-2024-.html
Article updated.
Previous articles -
Inflation increased slightly in September and moved closer to the Federal Reserve's target, according to a Commerce Department report Thursday. The personal consumption expenditures price index showed a seasonally adjusted 0.2% increase for the month, with the 12-month inflation rate at 2.1%, both in line with Dow Jones estimates.
The Fed uses the PCE reading as its primary inflation gauge, though policymakers also follow a variety of other indicators. Fed officials target inflation at a 2% annual rate, a level it has not achieved since February 2021. The September headline rate was down 0.2 percentage point from August's upwardly revised level.
Though the headline number showed the central bank nearing its goal, the inflation rate was at 2.7% excluding food and energy, after the so-called core measure increased 0.3% on a monthly basis. The annual rate was 0.1 percentage point higher than forecast but the same as in August.
The report comes with markets betting heavily that the Fed will cut its benchmark short-term borrowing rate when it meets next week. In September, the Fed slashed the rate by a half percentage point, a move virtually unprecedented during an economic expansion.
Inflation increased slightly in September and moved closer to the Federal Reserve's target, according to a Commerce Department report Thursday.
The personal consumption expenditures price index showed a seasonally adjusted 0.2% increase for the month, with the 12-month inflation rate at 2.1%, both in line with Dow Jones estimates. The Fed uses the PCE reading as its primary inflation gauge, though policymakers also follow a variety of other indicators.
Fed officials target inflation at a 2% annual rate, a level it has not achieved since February 2021.
Though the headline number showed the central bank nearing its goal, the inflation rate was at 2.7% excluding food and energy, after the so-called core measure increased 0.3% on a monthly basis. The annual rate was 0.1 percentage point higher than forecast.
This is breaking news. Please check back for updates.
Original article -
The personal consumption expenditures price index was expected to increase 0.2% in September and 2.1% from a year ago, according to the Dow Jones consensus forecast.
This is breaking news. Please check back for updates.
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