November PCE: Key fed inflation gauge rose 2.4% annually

Xem thêm : Federal Reserve’s preferred inflation gauge shows price pressures eased last month

The annual 2.4% rate was slightly below a 2.5% Dow Jones prediction but above of the Federal Reserve’s 2% goal.

Core inflation also increased by 0.1% month-over-month in November and 2.8% over the same month last year. The metric subtracts highly-volatile food and energy prices from the PCE index.

Both measurements were 0.1% above Dow Jones estimates.

Overall, personal consumption in the United States increased by $81.3 billion in November, according to the BEA. Of that figure, $48.3 billion was spent on goods, led by new vehicle purchases and recreational goods like audio and visual equipment.

The remaining $33 billion increase was allocated to services, which was primarily made up of financial service charges like credit cards, as well as sports and recreational club membership fees. Gambling was also a major expenditure among the personal consumption increase in spending in the services sector.

Xem thêm : investors await Fed’s preferred inflation gauge

Inflation grew by 0.2% in October month-over-month, and 2.3% on an annual basis, both in line with Dow Jones predictions.

Friday’s numbers come two days after the Fed released its latest interest rate numbers.

Federal Reserve Chairman Jerome Powell announced a 2.5% reduction of the key lending rate. The Dow Jones Industrial Average responded by falling by 1,000 points, the stock market index’s 10th consecutive day in the red.