Inflation rose two-tenths of a percentage point to 2.3% for the year ending in October, the Bureau of Labor Statistics reported Wednesday in an update to the Federal Reserve’s preferred gauge. The rise in the personal consumption expenditures index from 2.

The core PCE inflation measure is half of its 2022 peak, but it’s higher than it ever was from 1994 to 2020 as price increases continue to plague consumers.

Fed officials had been hoping this fall for a clean downtrend in inflation, allowing them to focus more fully on preventing an economic downturn. The data hasn't cooperated. Over the 12 months through October,

The Federal Reserve’s preferred inflation measure remained above the central bank’s 2% target pace in the year through October, as progress on slowing price growth appears to have stalled in late 2024.

The Federal Reserve’s preferred measure of underlying inflation accelerated in October from a year ago, helping explain policymakers’ more cautious approach to lowering interest rates.

October's Personal Consumption Expenditures report is the latest data the Fed will consider in its next interest rate decision.

According to the Federal Reserve’s preferred inflation gauge, consumer prices rose 2.3 percent in October from a year earlier, the Commerce Department said Wednesday.

Markets focus on the core PCE inflation reading, which the Fed considers a more accurate representation of overall price pressures, as it incorporates changes in consumer spending