PCE Inflation – US

Core PCE Inflation Edges Up in November

Core personal consumption expenditures (PCE) inflation increased to 2.79% year-over-year in November from 2.73% in October, while the headline measure rose slightly to 2.77%. The three-month annualized trend eased to 2.25%, still below the Federal Reserve's target of 2%

• Core PCE inflation ticked up by 0.16% month-over-month in November.
• Headline PCE inflation also edged higher, but at a slower pace than core.
• The three-month annualized trend for core PCE decelerated from October.

Downside risks include potential further weakening of the economy leading to reduced consumer spending and downward pressure on prices. Additionally, unexpected geopolitical events could disrupt supply chains and impact inflation dynamics.