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Inflation Doesn’t Want to Cooperate: PCE Price Indices for Core, Core Services, and Durable Goods Worsen Further MoM

November 1, 2024

The YoY “core” PCE price index, the Fed’s yardstick for its 2% target, rose 2.65%, with no progress over the past 5 months. But energy prices plunged.

The “core” PCE price index, the Fed’s primary yardstick for its 2% inflation target, rose by 3.1% annualized in September from August (not annualized, +0.254%), the biggest month-to-month increase since April. And August was revised higher (blue in the chart below). This month-to-month acceleration was driven by:

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