A key inflation measure monitored by the Federal Reserve rose in September, according to new data reported by the Commerce Department on Friday.
The “core” personal consumption expenditures (PCE) price index rose 0.3 percent in September, dipping slightly to 3.7 percent annual rate, down from 3.9 percent in August.
That’s the lowest point since May 2021.
The latest inflation data comes as the Fed is set to meet next week to discuss further interest rate hikes. The central bank has repeatedly raised rates over the last year-and-a-half in an effort to tame stubbornly high inflation and slow a surprisingly resilient economy.
The US economy exceeded expectations once again in data reported on Thursday, which showed gross domestic product (GDP) growing at a 4.9 percent annual rate.
While the Fed held interest rates steady at a range of 5.25 percent to 5.5 percent at its most recent meeting in September, it has indicated that there may be one more quarter-point hike before the end of the year.
The central bank also suggested last month that rates would remain higher for longer than previously expected.