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Key Fed inflation measure shows 2.4% rate in November, lower than expected

20 December 2024
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Key Fed inflation measure shows 2.4% rate in November, lower than expected
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In November, prices remained stable but still exceeded the Federal Reserve’s target compared to a year ago, with the personal consumption expenditures price index showing a 0.1% increase from October and a 2.4% inflation rate annually. Core PCE also rose 0.1% monthly and 2.8% from a year ago, below expectations. Fed officials view core inflation as a better indicator, with goods prices falling 0.4% and services rising 3.8% over 12 months, while housing inflation increased by 0.2%. Personal income and spending figures were slightly below forecasts, with personal saving rate at 4.4%. Following the release, stock market futures and Treasury yields declined, with investors reacting to the Fed’s recent interest rate cut and revised projections for future cuts based on inflation expectations.

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Tags: Breaking newsBreaking News: EconomyBreaking News: Marketsbusiness newsEconomyExpectedFedInflationkeyMarketsMeasureNovemberrateShows
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