Inflation Remains High in September, Keeping Pressure on Fed to Continue Raising Rates
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Inflation rose 0.4% in September, matching expectations and keeping pressure on the Fed.
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The PCE price index, the Fed's preferred inflation gauge, is up 3.4% over the past year, remaining well above the 2% target.
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Core PCE inflation, excluding food and energy, rose 0.3% and is up 3.7% over the past year.
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The decline in core inflation is unlikely to deter the Fed from raising rates at its next meeting.
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Inflation should continue declining as the labor market and wage growth slow, but it may take until 2024-2025 to reach 2% absent a recession.