Fed’s favored inflation gauge showed price growth continued to slow in September

An inflation gauge closely watched by Federal Reserve policymakers continued to slow in September as the pace of price growth trended closer to the Fed’s target in September.

The Commerce Department reported Thursday that the personal consumption expenditures (PCE) index rose 0.2% in September and increased 2.1% year over year. Those figures were in line with estimates by economists polled by LSEG.

Core PCE, which excludes volatile food and energy prices, rose 0.3% for the month and increased 2.7% from a year ago, in line with estimates.

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