Inflation Stagnation and Slumping Spending: A Slow Progress Report
TL;DR Summary
The core PCE price index, the inflation measure favored by the Fed, remained stuck near 4.6% for the sixth consecutive month, while core services inflation stayed at a 38-year high of 5.4%. Durable goods prices, which had been dropping, rose again due to a spike in motor vehicle prices. Energy prices plunged, contributing to a decrease in the overall PCE price index. Food prices saw a slight increase, while the overall PCE price index rose by 3.8%, the lowest since April 2021.
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