US 'Inflation Indicator' October PCE Also Shows Slower Increase... 6% Up

[Asia Economy New York=Special Correspondent Joselgina] The upward trend in the inflation indicator preferred by the U.S. Federal Reserve (Fed) has somewhat eased.

The U.S. Department of Commerce released the October Personal Consumption Expenditures (PCE) price index on the 1st (local time), showing a 6.0% increase compared to the same month last year. This is a slight slowdown from the 6.2% increase in September. Compared to the previous month, it rose by 0.3%.

Excluding the volatile food and energy sectors, the core PCE for October rose 5.0% year-over-year and 0.2% month-over-month. The core PCE increase also declined from September's 5.2%. The month-over-month increase was below market expectations of 0.3%.

The core PCE is considered the Fed's most preferred inflation indicator when monitoring inflation trends.

In particular, these figures came after the October Consumer Price Index (CPI) increase slowed to the 7% range, further accelerating market expectations that inflation has peaked.

The day before, Fed Chair Jerome Powell confirmed at the Brookings Institution that the Fed may slow the pace of interest rate hikes as early as December. However, Chair Powell pointed out that the slowdown in the CPI increase does not mean a permanent decline, noting that recent wage growth remains at a level high enough to keep inflation elevated.