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US Core PCE Inflation Falls to Three-Month Low in September

US Core PCE Inflation Falls to Three-Month Low in September

The US Commerce Department reported September core PCE inflation at 2.8% annually, down from 2.9%, while overall PCE rose, leaving the Fed to assess outdated data ahead of its policy meeting.

Summary

The US PCE price index rose 0.3% month-on-month in September, increasing the annual rate to 2.8% from 2.7%. Core PCE, which excludes food and energy, fell to 2.8% from 2.9%. The release, delayed by prior shutdown-related disruptions, means the Federal Reserve will review outdated inflation data at its upcoming meeting. The figures provide mixed signals—overall inflation slightly accelerated while core inflation eased—complicating policy assessments.

Terms & Concepts
  • Core PCE Price Index: A measure of consumer spending on goods and services in the United States, excluding food and energy, used by the Federal Reserve to gauge inflation trends.
  • PCE Price Index: The Personal Consumption Expenditures Price Index measures changes in the prices of goods and services consumed by households, reflecting overall inflation in the US economy.