Fed Inflation Gauge Rises 0.3% in September

The Federal Reserve's preferred gauge of inflation showed a modest slowdown in September, with consumer prices rising 0.3 percent from August, according to data released Friday by the Commerce Department. The report, delayed five weeks by a partial government shutdown, reinforces expectations for an interest rate cut at the central bank's policy meeting on December 9 and 10.

The Personal Consumption Expenditures price index, which tracks changes in prices for goods and services bought by or on behalf of U.S. residents, held steady at the same monthly pace as in August. On a year-over-year basis, prices increased 2.8 percent, a slight acceleration from the 2.7 percent rise recorded for August. The core PCE index, which strips out volatile food and energy costs, also advanced 0.2 percent monthly, matching the prior month's figure. Annually, core prices rose 2.8 percent, down marginally from 2.9 percent in August. If the core monthly pace persists, it would translate to an annualized rate approaching the Fed's 2 percent target.

These figures aligned closely with economist forecasts and indicate that inflationary pressures remained contained during the month, even as overall...