PCE Inflation Rises to 2.8% in November

The Commerce Department reported Thursday that the Federal Reserve's preferred inflation measure, the personal consumption expenditures price index, rose 2.8 percent in November from a year earlier, a slight increase from October's 2.7 percent annual pace. The data, delayed by a government shutdown last fall, covers both months and arrives just before the central bank's policy meeting next week, where officials will weigh potential adjustments to interest rates.

On a monthly basis, the headline PCE index increased 0.2 percent in both October and November, aligning with economist expectations. The core PCE index, which excludes volatile food and energy prices, also rose 0.2 percent monthly in November and 2.8 percent year over year, matching forecasts after October's 2.7 percent annual gain. These figures indicate inflation remains above the Fed's long-term target of 2 percent, a level it has not reached since early 2021 when prices began surging amid pandemic-related disruptions.

The report underscores a broader trend of sticky inflation after a sharp decline from four-decade highs in 2022. Headline PCE has hovered between 2.7 percent and 2.8 percent from August through...