United States PCE Price Index Monthly Change

The US personal consumption expenditures price index increased 0.1% month-over-month in November 2024, below 0.2% in each of the previous two months and lower than forecasts of 0.2%. Prices for goods increased less than 0.1% and prices for services were up 0.2%. The core PCE index, which excludes volatile food and energy prices, also increased 0.1%, the least in six months, compared to a 0.3% increase recorded in October and September and forecasts of 0.2%. Food prices gained 0.2% and energy prices also edged up 0.2%. On an annual basis, the headline PCE inflation rate accelerated for a second month to 2.4% from 2.3%, but below expectations of 2.5%. Core PCE inflation unexpectedly steadied at 2.8%, while forecasts were pointing to a rise to 2.9%. In December, the Federal Reserve revised its economic projections upward, raising the 2025 annual PCE inflation forecast to 2.5% from 2.1% and the core PCE inflation forecast to 2.5% from 2.2% previously estimated in September.