The core personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, showed a 0.1% increase in November. Year-over-year, it rose by 2.8%. The report indicated some progress in controlling inflation after recent stagnation, with core goods prices falling for the first time in three months. The data supports the Fed’s outlook for potential interest rate cuts in 2025, though it remains cautious with a projected two quarter-point reductions. Consumer spending remained resilient, growing by 0.3%, bolstered by healthy wage growth and holiday shopping.
