The Fed’s preferred inflation gauge showed inflation falling to the lowest level in over two years in October, according to the latest data from the Bureau of Economic Analysis.
- Y-O-Y: The Personal Consumption Expenditure (PCE) index slowed to 3.0% in October, down from 3.4% in September and the lowest level since March 2021.
- M-O-M: Consumer prices were flat in October, down from the 0.4% increase in September and the lowest level since July 2022.
Slight Beat. Economists were spot on with their year-over-year projection but they did think prices would rise by 0.1% in October.
Slowing Down. Both spending and income slowed exactly as economists projected in October.
- Personal spending rose 0.2% in October, down from 0.7% in September and the lowest level since May.
- Personal income also rose by 0.2% in October, down from 0.4% in September and the lowest increase since June.