Goods spending was supported by strong demand for motor vehicles and recreational products, while services spending saw notable contributions from financial services, recreation activities, and healthcare. The personal savings rate, however, edged lower to 4.4%, reflecting higher spending relative to disposable income.
What’s Behind the Easing Inflation?
The November data underscores a slowdown in inflationary pressures. Core PCE, which excludes volatile food and energy prices, rose by just 0.1% month-over-month and 2.8% year-over-year. Energy prices dropped by 4.0% compared to November 2023, while food prices increased by 1.4%. Services costs remained a key driver of overall inflation, rising 3.8% annually, while goods prices declined 0.4%.
The relatively stable monthly inflation figures reflect softer pricing in sectors like energy and goods, bolstered by cooling supply chain pressures and cautious consumer demand.
