PCE rises 2.8% as core inflation aligns with expectations

The Fed preferred inflation gauge, the PCE Index, rose 2.8% year over year in September. Core PCE, which excludes food and energy, also came in at 2.8%, matching analyst expectations. Core prices increased 0.2% month over month. While headline PCE was slightly softer than forecasts, the data signals inflation is easing in line with the Fed outlook.