Sweet relief: PCE falls again in September, consumer spending grows

The BEA reported this morning that the closely followed personal consumption expenditures (PCE) price index increased 0.5% from the previous month and accelerated 5.1% over the past 12 months.

The inflation number has fallen since it peaked in June at 7%.

The monthly gain was in line with Dow Jones estimates, while the annual increase was slightly below the 5.2% expectation.

Personal spending also rose 0.6%, more than expected. The consumer has been incredibly resilient this year amid economic challenges.

As inflation falls and cracks emerge in housing and financial markets, there’s a growing expectation of the fed to finalize their interest rate hikes to take pressure off the economy. Wall Street whispers indicate the November rate hike might be the final 75 basis point hike of the year.