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 Commerce Department released data showing that PCE inflation ticked higher in October, though the Federal Reserve's preferred inflation gauge remained near last month's level.

U.S. inflation gauge ticks higher with price pressures remaining stubborn.

Consumer price increases accelerated last month, the latest sign that inflation’s steady decline over the past two years has stalled.

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.

The Federal Reserve’s preferred inflation gauge is likely to show a sharper increase in prices in October for the second month in a row, adding to the uncertainty about how much the central bank will reduce borrowing costs.

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

October's increase in the core PCE (personal consumption expenditure) price index is expected to hang out at +0.3% month-over-month, the same as in September, according to economists' consensus. It highlights the difficulty in wringing the last bit of disinflation out of the current inflation rate to bring it down to the Federal Reserve's 2% goal.