November PCE Report Reveals Persistent Inflation Levels
White House senior counselor for trade and manufacturing Peter Navarro discusses efforts to rescue the American dream on ‘Making Money.’
The Federal Reserve’s preferred inflation gauge has indicated that consumer prices remain elevated as we head into November, just ahead of the central bank’s upcoming policy meeting. This information is crucial for understanding the current economic landscape and the Fed’s potential actions moving forward.
According to a report released by the Commerce Department on Thursday, the personal consumption expenditures (PCE) index experienced a 0.2% increase on a monthly basis in November, bringing the year-over-year rise to 2.8%. While this monthly increase aligns with the estimates provided by LSEG economists, the annual inflation figure slightly exceeded expectations, which were set at 2.7%.
When examining the core PCE, which excludes the more volatile categories of food and energy prices, the index also rose by 0.2% month-over-month and matched the year-over-year increase of 2.8%. These figures were consistent with the forecasts made by economists surveyed by LSEG, indicating a stable yet concerning inflationary trend.
Federal Reserve policymakers are closely monitoring the PCE headline figure as they strive to bring inflation back to their long-term target of 2%. However, they consider core data to be a more reliable indicator of underlying inflation trends. This distinction is vital as it influences their decision-making process regarding interest rates and other monetary policies.
This is a developing story. Please check back for updates.
White House senior counselor for trade and manufacturing Peter Navarro discusses efforts to rescue the American dream on ‘Making Money.’
The Federal Reserve’s preferred inflation gauge has indicated that consumer prices remain elevated as we head into November, just ahead of the central bank’s upcoming policy meeting. This information is crucial for understanding the current economic landscape and the Fed’s potential actions moving forward.
According to a report released by the Commerce Department on Thursday, the personal consumption expenditures (PCE) index experienced a 0.2% increase on a monthly basis in November, bringing the year-over-year rise to 2.8%. While this monthly increase aligns with the estimates provided by LSEG economists, the annual inflation figure slightly exceeded expectations, which were set at 2.7%.
When examining the core PCE, which excludes the more volatile categories of food and energy prices, the index also rose by 0.2% month-over-month and matched the year-over-year increase of 2.8%. These figures were consistent with the forecasts made by economists surveyed by LSEG, indicating a stable yet concerning inflationary trend.
Federal Reserve policymakers are closely monitoring the PCE headline figure as they strive to bring inflation back to their long-term target of 2%. However, they consider core data to be a more reliable indicator of underlying inflation trends. This distinction is vital as it influences their decision-making process regarding interest rates and other monetary policies.
This is a developing story. Please check back for updates.
