US core PCE inflation undershoots in October

01 December 2022

 

Summary: US core PCE price index up 0.2% in October, less than expected; annual rate slows from 5.2% to 5.0%; reflects a number of one-offs; Treasury yields noticeably lower; Fed rate-rise expectations soften. 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 then...

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