PCE inflation November 2024:

Prices were little changed in November, but were still above the Federal Reserve’s target from a year ago, according to a Commerce Department measure released Friday.

The personal consumption expenditure price indexThe Fed’s preferred measure of inflation rose just 0.1% from October. The measure showed an annual inflation rate of 2.4%, still ahead of the Fed’s 2% target but below the Dow Jones estimate of 2.5%. The monthly reading was also 0.1 percent lower than forecast.

Core PCE, excluding food and energy, also rose 0.1% month-on-month and was 2.8% higher than a year earlier, both readings were 0.1 percentage points below forecasts. Fed officials generally consider the core reading a better indicator of long-term inflation trends because it excludes volatile gas and food categories.

The annual core inflation reading was the same as in October, while the headline rate rose 0.1 percentage point.

The readings showed a slight increase in the prices of goods and a 0.2% increase in the prices of services. A 0.2% increase was also recorded in food and energy prices. On a 12-month basis, prices of goods decreased by 0.4%, while services increased by 3.8%. Food prices increased by 1.4%, energy decreased by 4%.

Housing inflation, one of the stickier components of inflation over the economic cycle, showed signs of cooling in November, rising just 0.2%.

Revenue and expenses on the issue were also slightly lighter compared to expectations.

Personal income rose 0.3% after rising 0.7% in October, missing the 0.4% forecast. Personal spending on spending rose 0.4%, one-tenth of a percentage point lower than forecast.

The personal savings rate fell to 4.4%.

Stock futures After the report, treasury income also declined while being held in the negative region.

“Stick inflation is a little less stuck this morning,” said Chris Larkin, managing director of trading and investing at E-Trade Morgan Stanley. “The Fed’s preferred inflation gauge came in lower than expected, which may take away some of the market’s disappointment over Wednesday’s Fed interest rate announcement.”

The report comes just two days after the Fed cut its benchmark interest rate by another quarter of a percentage point to a target range of 4.25% to 4.5%, the lowest level in two years. However, Chairman Jerome Powell and his colleagues have cut their expected path to 2025, now penciling in just two cuts, compared to the four cuts outlined in September.

While Powell said on Wednesday that inflation was “moving closer” to the Fed’s target, he said changes in the projected path for rate cuts reflected “inflation will be higher” in the coming year.

“It’s kind of common sense to think you’re going a little slower when the road is uncertain,” Powell said. “It’s no different than driving on a foggy night or walking into a dark room full of furniture. Just slow down.”