Washington: An inflation gauge closely watched by Federal Reserve policymakers ticked higher in October, though it remains near the Fed’s inflation target. The Commerce Department on Wednesday reported that the personal consumption expenditures (PCE) index rose 0.2% in October and 2.3% year over year. Those figures were in line with the estimates of economists polled by LSEG. Core PCE, which excludes volatile food and energy prices, rose 0.3% for the month and increased 2.8% from a year ago, in line with estimates.
According to Kuwait News Agency, a statement from National Economic Advisor Lael Brainard emphasized the significance of the latest data. Brainard noted, “Today’s data show inflation has fallen to 2.3%, similar to the level before the pandemic, while our economy has continued to expand by nearly 3% per year.” She highlighted the progress made in the economic recovery, stating that gas prices have dropped to around $3.00 per gallon, marking the lowest for any Thanksgiving week since the pandemic. A
dditionally, the cost of a Thanksgiving meal has decreased for two consecutive years, providing much-needed relief during the holiday season. Brainard also pointed out that household incomes have risen nearly $4,000 more than prices during the current administration.
She further expressed a desire to build on this progress by lowering costs for essential items such as housing and medicine. Brainard cautioned against implementing sweeping policies that could potentially increase prices for working families, advocating for continued efforts to sustain the positive economic trajectory.