September core PCE ticked up to 3.1% year-over-year, just as expected but still a notch above August's 3.0%. Headline PCE held at 3.6%.
Nothing shocking here, but the direction matters more than the number. Inflation isn't collapsing, it's grinding. The Fed watches this metric closer than CPI, and a stubborn 3.1% core reading keeps them cautious.
Markets had already priced this in, but it's a reminder: the last mile of disinflation is the hardest. Progress has slowed. Patience will be tested.
Nothing shocking here, but the direction matters more than the number. Inflation isn't collapsing, it's grinding. The Fed watches this metric closer than CPI, and a stubborn 3.1% core reading keeps them cautious.
Markets had already priced this in, but it's a reminder: the last mile of disinflation is the hardest. Progress has slowed. Patience will be tested.