Core PCE Remains Stubbornly elevated
The November 2024 Personal Consumption Expenditures (PCE) price index rose by 0.1% month-over-month, bringing the year-over-year increase to 2.4%. Core PCE, which excludes volatile food and energy prices, also grew by 0.1% MoM and 2.8% YoY.
US CPI Drives Policy Rate Cut Expectations Higher
The Consumer Price Index (CPI) for November 2024 rose by 0.3% month-over-month and 2.7% for the twelve months ended in November. Core CPI, which excludes volatile food and energy prices, increased by 0.2% MoM and 3.3% for the same 12-month period.
PCE Inflation Remains Stubborn as Housing Continues to Drive the Figure Higher
PCE inflation increased by 0.2% MoM in October, a 2.3% YoY rate higher than the 2.1% reported in September. Furthermore, the core PCE index, which excludes food and energy, rose 0.3% MoM and 2.8% YoY, having increased 2.7% in August and September.
October CPI Met Market Expectations
The Consumer Price Index (CPI) for October 2024 modestly increased 0.2% MoM (+2.6% YoY), and the rate has remained unchanged since July. Core CPI, which excludes food and energy, rose 0.3% MoM (+3.3% YoY).
Year-Over-Year Core PCE Remains Steady
The latest September Personal Consumption Expenditures (PCE) inflation data revealed a stable yet nuanced inflation landscape. The PCE price index increased 0.2% month-over-month and 2.1% year-over-year, reflecting ongoing moderation in price growth. Meanwhile, the core PCE price index, which excludes volatile food and energy prices, rose by 0.3% MoM and remained steady for a third consecutive month at a 2.7% YoY increase, signaling persistent inflationary pressures in core goods and services. The core PCE, the Federal Reserve's preferred inflation measure, is closely monitored to guide monetary policy.