Fed’s Favorite Inflation Gauge Up 2.9% from a Year Ago

The Federal Reserve’s favored inflation gauge shows a notable slowdown in December 2023. The Commerce Department’s personal consumption expenditures price index indicated a monthly rise of just 0.2% and an annual increase of 2.9%, excluding volatile food and energy costs. This data, aligning with Dow Jones economists’ predictions, marks a decrease from the 3.2% annual rate observed previously, reaching the lowest point since March 2021. Even when accounting for fluctuating food and energy prices, the overall inflation rate mirrored these trends, maintaining a steady 2.6% on a yearly basis. This deceleration in core inflation suggests a pivotal shift in the economic landscape, potentially impacting Federal Reserve policies and investor strategies in the gold and silver markets.