Sunday, June 23, 2024

A closely watched measure of inflation showed continued signs of fading in October, encouraging news for the Federal Reserve as officials try to gauge whether they need to take further action in order to fully stamp out rapid price increases.

The Personal Consumption Expenditures inflation measure, which the Fed cites when it says it aims for 2 percent inflation on average over time, climbed by 3 percent in the year through October. That was down from 3.4 percent the previous month, and was in line with economist forecasts. Compared to the previous month, prices were flat.

After stripping out volatile food and fuel prices for a clearer look at underlying price pressures, inflation climbed by 3.5 percent over the year. That was down from 3.7 percent previously.

The latest evidence that price increases are slowing came alongside other positive news for Fed officials: Consumers are spending less robustly. A measure of personal consumption climbing by 0.2 percent from September, marking a slight slowdown from the previous month.

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