The personal consumption expenditure (PCE) price index—the Federal Reserve’s preferred inflation gauge—continued to slow in September as the central bank inched closer to reaching its 2 percent inflation target.
The annual PCE inflation rate eased to 2.1 percent last month, down from 2.3 percent in August, according to the Bureau of Economic Analysis (BEA). This was the lowest since February 2021. The PCE price index rose by 0.2 percent monthly, up from 0.1 percent in August.
This was in line with economists’ expectations.
Goods prices fell by 0.1 percent while services swelled by 0.3 percent, with food costs, motor vehicles and parts, and prescription drugs the leading contributors….