US EditionCore inflation rate watched by Fed hit 2.8%, delayed September data shows, lower than expected
Core inflation held steady at 2.8% in September, matching forecasts after a five-week delay caused by the government shutdown, supporting expectations for a Fed rate cut.
- The delayed September report showed the Commerce Department reported PCE rose 0.3% month-to-month and 2.8% year-over-year, while core PCE gained 0.2% monthly and 2.8% annually.
- Core measures matter because core PCE strips out volatile food and energy, which the Federal Reserve uses to gauge inflation above its 2% target for persistent price trends.
- Personal income data showed personal incomes rose 0.4% in September for the second straight month while consumer spending slowed and was flat after inflation, despite online sales surging 7.7% post-Thanksgiving.
- Traders responded by pricing roughly 87% odds of a rate cut into a 3.5%–3.75% range, while analysts said stable inflation readings support the U.S. dollar.
- The shutdown left the Fed with less timely data, and the caused data blackout complicated Federal Reserve officials' information, while policymakers must balance fighting inflation and responding to weaker hiring.
48 Articles
48 Articles
Boston 25 News
Fed's preferred inflation gauge changed little in September with price gains muted
The Federal Reserve’s preferred measure of inflation slowed a bit in September, likely easing the way to a widely expected interest rate cut by the central bank next week
Associated Press News
Fed's preferred inflation gauge stayed elevated in September as spending weakened
The Federal Reserve’s preferred measure of inflation slowed a bit in September, likely easing the way to a widely expected interest rate cut by the central bank next week.
Inflation rose to 2.8% in September in Fed’s preferred gauge, delayed report shows
Inflation rose one-tenth of a percentage point to 2.8% for the year ending in September, according to a hotly anticipated release of the Federal Reserve’s preferred inflation gauge. The Friday report by the Bureau of Labor Statistics comes after the longest government shutdown in U.S. history delayed the release schedule of key economic reports. LAWMAKERS GET NEARLY 50% STOCK-PICKING BOOST AFTER JOINING LEADERSHIP, STUDY FINDS The report shows t…
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