Fed's Inflation Target in Sight as PCE Index Nears 2%

The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, showed a continued slowdown in September, with overall inflation falling to 2.1% year-over-year, nearly reaching the Fed’s 2% target. However, core inflation, which excludes volatile food and energy prices, remained stubbornly high at 2.7% annually, indicating that some price pressures persist beneath the surface.