Inflation & Prices
Key Inflation Gauge Cools Further, Paving Way for Smaller Fed Rate Hike
- Core, overall annual PCE prices climbed the slowest since 2021
- Real spending declined 0.3% in December, mostly due to goods
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The Federal Reserve’s preferred inflation measures eased in December to the slowest annual paces in over a year while consumer spending fell, helping pave the way for policymakers to further scale back the pace of interest-rate hikes.