Fed’s Favorite Core Inflation Gauge Falls Below 3%

The Fed's preferred gauge of underlying price growth slipped below 3% in December, data out Friday showed. Core PCE prices rose 2.9% last month from a year earlier, the BEA said. It was the slowest pace since March of 2021, before inflation took off. On a MoM basis, core prices rose 0.2% (0.172% unrounded), in line with estimates. The headline PCE print for December was 2.6% YoY. Measured on a six-month annualized basis, core price growth was 1.9% last month. So, below target. Generally sp