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

Core Insights - A key inflation measure, the core personal consumption expenditures (PCE) price index, rose by 0.2% monthly and recorded an annual rate of 2.8%, which is 0.1 percentage point lower than expected [1][2] - The headline PCE also increased by 0.3% for the month, maintaining the annual inflation rate at 2.8%, aligning with expectations [2] - The report's release was delayed due to a government shutdown, which halted data collection and economic reports [3] Federal Reserve Implications - The Federal Reserve uses the PCE price index as its primary tool for assessing inflation, with a preference for the core measure as a better indicator of long-term trends [2] - The lower-than-expected annual rate may provide further justification for the Federal Reserve to consider lowering interest rates [1]