PCE inflation November 2026:

Inflation data released by the Federal Reserve in November showed that prices continued to rise slightly above the central bank’s target. The personal consumption expenditures price index, a key measure used by the Fed, indicated that inflation was at 2.8% for both headline and core figures, in line with expectations.

The report also revealed that personal income saw a modest increase of 0.1% in October and 0.3% in November, slightly below forecasts. Consumer spending, as measured by personal consumption expenditures, rose by 0.5% in both months, matching expectations.

Despite the rise in consumer spending, the personal savings rate dipped slightly to 3.5% in November. Price figures for November showed a 0.2% increase in both goods and services, with energy-related costs seeing a notable rise of 1.9%.

The latest data comes on the heels of a report from the Bureau of Economic Analysis, which stated that gross domestic product grew by 4.4% in the third quarter. Additionally, the Labor Department reported that jobless claims are at their lowest level in two years.

Economists believe that the strong consumer spending is driving the US economy forward, despite challenges such as a slowing labor market and persistent inflation. James McCann, senior economist at Edward Jones, noted that the data should reassure the Fed about the economy’s solid footing.

Looking ahead, market expectations suggest that the Federal Reserve will maintain its current interest rates at the upcoming policy meeting. Traders anticipate at most two rate reductions this year, as policymakers assess the impact of previous rate cuts, inflation trends, and geopolitical uncertainties.

Overall, the data paints a picture of an expanding economy with resilient consumer spending, providing some assurance to policymakers amidst a complex economic landscape.