Core inflation rate watched by Fed hit 2.8%, delayed September data shows, lower than expected

he latest core PCE numbers showed a 0.2% increase month-over-month and a 2.8% annual rate, keeping inflation on the gradual downward trend the Fed has been hoping for. Since PCE is the Fed’s preferred gauge, this print will likely factor into next week’s meeting, where markets already expect another rate cut. Personal income rose 0.4% for the month, while spending increased 0.3%, a bit softer than forecast but still pointing to steady consumer activity. Overall, nothing shocking in the data just more signs that inflation is cooling, but not fast enough to fully remove uncertainty around policy.

Source: [https://www.cnbc.com/2025/12/05/pce-inflation-report-september-2025.html](https://www.cnbc.com/2025/12/05/pce-inflation-report-september-2025.html)