Prices of core PCE services ex-housing rose 0.37% in September, pushing the 12-month change to 3.6% and matching the highest such reading since 2024.
Core goods was also firm at 0.20%. While core goods prices were back in 2024 were falling on a year-over-year basis (as was the pre-pandemic trend), those prices are now at 2%. If core goods prices rise like this going forward, there will need to be more services disinflation for the Fed to achieve its 2% target.
Core PCE was 0.32% in September.
The 12-month change was 3.1% (vs 3.0% in August and 2.8% one year earlier).
The 6-month annualized rate was 2.9% (vs 2.8% in August and 2.9% one year earlier).
The 3-month annualized rate was 2.9% (vs 2.2% in August and 2.6% one year earlier)