The rate of inflation has come down quite a bit during the second Trump administration, but Americans are stuck with high prices until they can see some deflation. So far, the Bidenflation era of price increases continues, though at a much slower pace.
Today, the Core PCE inflation rate, which is said to be closely watched by the Federal Reserve, came in at 2.8% year over year. Economists predicted the rate exactly in a survey taken by Bloomberg. CNBC writes:
The core personal consumption expenditures price index, which excludes volatile food and energy prices, indicated a 0.2% monthly rise while the annual rate was 2.8%. The monthly rate was in line with the Dow Jones consensus, but the annual level was 0.1 percentage point lower. The core annual rate edged down from 2.9% in August.
In addition, headline PCE increased 0.3% for the month, putting the annual inflation rate also at 2.8%, according to the department’s Bureau of Economic Analysis. Both of those readings were in line with expectations though the annual rate was up 0.1 percentage point from August.
Federal Reserve officials use the PCE price index as their primary policy tool for inflation. While officials look at both measures, they generally consider core a better indicator of longer-term inflation trends.
Action Line: It may not feel like prices are coming down because many aren’t as of yet. They’re just rising at a slower rate. Click here to subscribe to my free monthly Survive & Thrive letter.
