US Inflation Gauges Cool, Consumer Spending Stalls as Fed Nears Rate Peak
- Excluding food and energy, prices rose 0.2% in November
- Inflation-adjusted spending stagnated, dragged down by goods
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The Federal Reserve’s preferred inflation measures eased in November while consumer spending stagnated, suggesting the central bank’s interest-rate hikes are helping to cool both price pressures and broader demand — with more tightening on the way.
The personal consumption expenditures price index excluding food and energy, which Fed Chair Jerome Powell has stressed is a more accurate measure of where inflation is heading, rose 0.2% in November from a month earlier, Commerce Department data showed Friday. That matched estimates, but data for the prior month were revised higher.