According to the Bureau of Economic Analysis (BEA), the PCE inflation indicator in the United States decreased by two-tenths in September, settling at 2.1% compared to the 2.3% year-over-year of the previous month. The personal consumption expenditures (PCE) price index, used by the Federal Reserve as the main measure to monitor price developments, decreased in line with analysts' expectations.
The core data, which excludes food and energy prices, remained at 2.7%, matching the figure from August. The month-over-month PCE inflation in September was 0.2%, one-tenth less than the core figure of 0.3%, in line with market forecasts.
Disposable personal income of Americans increased by 0.3%, reaching $57.4 billion, while personal consumption expenditure rose by 0.5%, reaching $105.8 billion. The improvement in prices shows an approach to the 2% inflation target set by the Federal Reserve, which in September lowered interest rates, trusting that the country's economy was showing signs of solid growth with a downward trend in prices.
Despite the phase of economic growth, analysts expect the Fed to lower interest rates again at its next monetary policy meeting, which will take place after the elections on November 5.
