Fed's preferred inflation gauge shows price increases fell in November but still remain sticky

Published On Dec 20, 2024, 8:35 AM

The Federal Reserve's preferred inflation measure revealed that while month-over-month price increases in November decreased, inflation remains persistent. The core PCE index rose 0.1% in November, down from 0.3% in October and below expectations of a 0.2% increase. Yearly core prices remained stable at 2.8%, matching October's rate but underperforming Wall Street expectations of 2.9%. Overall PCE increased by 2.4% annually, slightly more than anticipated. The Fed is expected to implement fewer interest rate cuts in 2025 and sees core inflation peaking at 2.5%, indicating ongoing challenges in reaching the annual 2% inflation target.