Fed's favored inflation gauge showed price growth picked up in October
Published On Nov 27, 2024, 10:03 AM
The latest inflation data from the Commerce Department indicates that the personal consumption expenditures (PCE) index increased by 0.2% in October and 2.3% year-over-year. Core PCE, which excludes food and energy prices, rose by 0.3% for the month and increased by 2.8% from a year ago. These figures align with economists' projections and suggest that while inflation is edging up, it remains close to the Federal Reserve's 2% target.
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The rise in inflation might lead the Federal Reserve to adopt a more cautious approach regarding interest rate hikes, which could impact sectors sensitive to interest rates like utilities and real estate. Conversely, financial institutions could benefit from a rising interest rate environment, as they often earn more from lending when rates are higher.
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