US core PCE inflation flat in October; “moderating steadily since June”

25 November 2020

 

Summary: US Fed’s favoured inflation measure flat in October; in line with market expectations; annual rate falls after rising for five months; “inflation moderating steadily since June; little movement from Treasury bond yields.   One of the US Fed’s favoured measures of inflation is the change in the core personal consumption expenditures (PCE) price index. After hitting the Fed’s target at the time of 2.0% in mid-2018, the annual rate...

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