U.S. PCE price index slips to 2.1% annual rate, closer to Fed's target

On October 31,9 the annual rate of the U.S. core PCE price index continued to approach the Federal Reserve's 2% target, although the pace of monthly price growth accelerated. A rate cut by the Fed at its November meeting remains the most likely outcome. Data released Thursday showed that PCE rose 0.2 percent in September from a year earlier, compared with a 0.1 percent gain in August, and economists generally forecast a 0.2 percent rise. The figure was up 2.1% from a year ago, the smallest annual increase since the beginning of 2021.The core PCE price index registered a monthly rate of 0.3% in September. The overall PCE index grew at an annualized rate of 1.5% in the third quarter, down from 2.5% in the second quarter, due to lower energy prices.