December 22 (Reuters) – Inflation in the United States slowed again in November, falling further below the threshold of 3% on an annual basis, which should fuel expectations of a rate cut by the Federal Reserve (Fed) in next March.
The PCE consumer price index – a measure closely watched by the central bank – fell 0.1% month-on-month in November. Over one year, it increased by 2.6%, compared to 2.9% (revised) in October.
This last month was the first since March 2021 to see a PCE inflation rate below 3%.
The basic “core PCE” inflation index, which excludes the volatile elements such as energy and food products, increased by 0.1% over one month after +0.1% (revised) in October.
Over one year, it stands at 3.2%, compared to 3.4% (revised) in October.
Economists polled by Reuters expected on average an increase in the “core PCE” index of 0.2% over one month and 3.3% over one year.
At the same time, consumer spending by American households increased in November by 0.2% in adjusted data, after +0.1% (revised) in October and while economists polled by Reuters were targeting an increase of 0.3%. (written by French Dagmarah Mackos, edited by Blandine Hénault)
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