An inflation measure closely watched by the Federal Reserve eased in October, providing some welcome relief to millions of Americans who have been crushed by higher prices.
The personal consumption expenditures (PCE) index showed that consumer prices were unchanged from the previous month, according to the Labor Department. On an annual basis, prices climbed 3% — down from the 3.5% recorded the previous month.
The figures were both mostly in line with estimates from Refintiv economists.
In another sign the Fed's fight against inflation is making progress, core prices — which strip out the more volatile measurements of food and energy — climbed 0.2% from the previous month and 3.5% from the previous year. It marked the best reading for core inflation since 2021.
Customers shop at a supermarket in Foster City, California on Sept. 13, 2023. The Labor Department reported Wednesday that the consumer price index, a key gauge of inflation, rose 0.6 percent in August, its biggest monthly gain in 2023; and 3.7 perce (Photo by Li Jianguo/Xinhua via Getty Images / Getty Images)
While the Fed is targeting the PCE headline figure as it tries to wrestle consumer prices back to 2%, Chair Jerome Powell previously told reporters that core data is actually a better indicator of inflation. Still, both the core and headline numbers point to inflation that continues to run above the Fed's preferred 2% target.
This is a developing story. Please check back for updates.