The Fed’s preferred inflation gauge edged up mostly in line with economists’ expectations in September, likely paving the way for the Federal Reserve to cut interest rates next week.
The core personal consumption expenditures, or PCE, price index, which excludes food and energy, rose 0.2% month over month and 2.8% year over year, the Bureau of Economic Analysis reported Friday. Economists surveyed by FactSet had expected a 0.2% monthly increase and a 2.8% annual rise.
Headline PCE, which includes all categories, rose 0.3% on the month and 2.8% from a year earlier, compared with forecasts for a 0.21% monthly gain and a 2.8% increase from September 2024.