While US prices remained high in September, there is an encouraging sign in the form of a slowdown in pay growth, providing some hope for relief from rising inflation, according to the most recent set of inflation data released. According to the Bureau of Economic Analysis, the Personal Consumption Expenditures Index, which measures consumer prices, increased by 0.3% in August and September but was constant at a high 6.2% for the year. In the meantime, the US Federal Reserve's favorite inflation measure, the Core PCE, which takes fluctuating food and energy costs out of account, climbed by 5.1% yearly. This was somewhat higher than the 4.9% gain from the previous month but still slightly below consensus predictions.
The information highlights the continuous challenge the Federal Reserve faces with tackling the greatest level of inflation in the last forty years. The Fed is expected to raise interest rates one more time in an attempt to regulate inflation and reduce demand, but others believe that given the indications of an imminent slowdown in wage growth, this rate hike may be the last of its kind. The outcome of these efforts will be closely tracked as the Fed struggles to keep the economy stable in the face of inflationary pressures.
Source: https://www.cnn.com/2022/10/28/economy/us-pce-inflation-september/index.html
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