From Dow Jones & Company:



In November, the U.S. inflation rate, as measured by the personal consumption expenditure index, fell for the first time since 2020, indicating that price pressures continue to subside. The PCE index dropped 0.1% in November and was unchanged in October. The increase in inflation over the past year slowed to 2.6% from 2.9% in the prior month. The core PCE rate, excluding food and energy, rose 0.1% in November, and the increase over the past 12 months decelerated to 3.2%. The Federal Reserve has left its key short-term interest rate unchanged and many investors and economists anticipate a reduction in interest rates, but Fed officials have stressed that rates are likely to remain high. The Fed is aiming to slow inflation to 2% or less. Some analysts believe that the Fed is on the verge of victory in its battle against inflation, while others are more cautious, stating that the decline in inflation may not be sustainable. President Joe Biden and his team are celebrating the latest reading for the Federal Reserve’s preferred inflation gauge, and pledge to continue working to lower costs for Americans. In other data, consumer spending rose 0.2% in November, while incomes rose 0.4%. Despite the modest growth in spending, the economy has slowed after a strong surge in gross domestic product in the third quarter. However, consumer sentiment finished 2023 at a five-month high, which may be a positive sign for the economy as the new year begins.



Original: U.S. inflation falls by more than expected in November, bolsters case for lower interest rates from the Fed