Inflation was more manageable than expected in November, according to the Federal Reserve’s favored measure of price changes, as sticky inflation douses investors and borrowers’ hopes of much lower interest rates in 2025.
by Derek Saul
Forbes
Key Facts
– The core personal consumption expenditures index rose 2.8% year-over-year, according to the metric released Friday morning by the Commerce Department, matching October’s reading.
– The reading of core PCE, which tracks how much Americans spent on goods and services outside of more price-volatile food and energy categories, is better than median economist forecasts of 2.9%, according to Dow Jones data.
– Headline PCE inflation came in at 2.4%, also lower than estimates of 2.5%, but still up from October’s 2.3%.
What’s going on here?
The Federal Reserve’s preferred measure of inflation ticked up less than expected in November, offering a glimmer of relief amid persistent price pressures that have cast doubt on the central bank’s recent interest rate cuts.
It’s easy to think of “inflation” as an abstract economic principle and forget that it has real impacts on real people.
Marco Polo never actually set foot on Japanese soil. But that didn’t stop him from writing the most wildly exaggerated tales about the immense, incredible wealth of Japan– which he called Cipangu.
Executive Summary
The Fed Cut Again Even Though Economic Data Called for a Pause
Trump will begin his first 100 days with an emphasis on his economic plans.
Visualized: Food Inflation in the U.S. (2015-2025F)