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Consumer Spending Cooled in November as Closely Watched Inflation Gauge Slowed



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The Federal Reserve’s preferred inflation measure is showing signs of moderating after months of rapid price increases, and a closely watched gauge of consumer spending slowed last month, a sign that the economy may have less steam as it heads into 2023.The Personal Consumption Expenditures price index climbed 5.5 percent in November from a year earlier, a slowdown from 6.1 percent in the previous reading. After stripping out food and fuel, which jump around, a so-called core price measure climbed 4.7 percent, down from 5 percent in the previous reading. Both figures were roughly in line with economist forecasts.Although inflation is slowing, it still has a long way to go to return to a more normal pace. The Fed has raised interest rates at the fastest clip in decades this year as it tries to temper consumer and business demand, hoping to force price increases to moderate. Those rate increases are now trickling through the economy, slowing the housing market, cooling demand for new b …

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