Inflation declines to 6% in October, according to key gauge watched by Fed
by Zachary Halaschak, Economics Reporter |
December 01, 2022 08:35 AM
Inflation fell three-tenths of a percentage point to 6% annually in October, as measured by the gauge favored by the Federal Reserve.
The decline in the personal consumption expenditures price index reported Thursday morning by the Bureau of Economic Analysis is a sign that inflationary pressures are abating in the face of the Fed's campaign to slow price gains by raising inflation rates. Nevertheless, inflation is still running much faster than the central bank's target and hurting household purchasing power.
The latest inflation measures are "well above target and support a move up in rates into restrictive territory," wrote Rubeela Farooqi the chief U.S. economist for High Frequency Economics.
Core PCE inflation, a measure of inflation that strips out energy and food prices and is generally less volatile, slowed two-tenths of a percentage point to a 5% year-over-year rate. The Fed's target is a 2% rate.
The report is the last major inflation report before the Fed meets next week to decide how much to hike interest rates.
The central bank has been tightening monetary policy at a dramatic pace in a desperate bid to bring down the inflation that has hit households hard and damaged President Joe Biden's ratings.
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https://www.washingtonexaminer.com/policy/economy/inflation-at-5-in-october-according-to-key-gauge-watched-by-fed
