US core PCE showed good progress towards the Fed reaching its desired level of inflation after printing its lowest since figure since Q1 2021. The Fed’s 2% target however, is attached to the PCE Price Index which revealed the difficulty in forcing the overall level of prices lower from here. The 2.6% figure was in line with expectations and happens to be the exact same reading last month – revealing that remaining undesirable price pressures are proving difficult to shake. Overall, inflation is still heading in the right direction and with the help of lower base effects, inflation is expected to continue to ease further.
