Personal Consumption Expenditures up 2.8% year‑over‑year in November, Fed gauge shows

Consumer prices rose moderately in October and November, the Federal Reserve’s preferred gauge for inflation showed, with the Personal Consumption Expenditures price index up 0.2 percent in both months and 2.8 percent year over year in November, the data released on Thursday said.

The reading, while far below the pandemic-era highs, indicated inflation continues to press on households. Goods inflation, which had been cooling since 2022, swung back up after the Trump administration announced tariffs last spring, the report said. The numbers were delayed because a government shutdown last fall prevented key data collection functions.

Officials who set interest rates will have the figures to consider when they meet next week; traders expect the Federal Reserve will decide not to cut interest rates again for now, citing stronger-than-expected growth, tame unemployment and a plateau in inflation. Other data in the release showed personal income rose by $80 billion in November, a 0.3 percent monthly gain, while inflation-adjusted disposable personal income fell a tenth of a percentage point in October before rebounding by a tenth in November.

The report also noted unemployment at 4.4 percent in December, a revised 4.4 percent annualized pace for third-quarter growth, and outside estimates that fourth-quarter growth could remain strong.

Key Topics

Business, Personal Consumption Expenditures, Federal Reserve, Inflation, Tariffs, Trump Administration