MNI BRIEF: US Core PCE 2.7% In Sept, Jobless Claims Drop
MNI (WASHINGTON) - U.S. core PCE inflation rose 0.254% in September, in line with Wall Street estimates, leaving the 12-month core inflation rate at 2.7%, the Bureau of Economic Analysis said Thursday.
Core PCE slowed to 2.3% at the three and six-month annualized rates. Both July and August core inflation data were revised slightly higher to 0.17% and 0.156%, respectively. Headline PCE inflation, the Fed's official price target, added 0.2% last month, bringing the 12-month rate to 2.1%, the BEA said.
In labor data released Thursday morning, initial jobless claims and continuing claims as well as the employment cost index came in lower than expected. The data should keep the Fed on track to lower interest rates again at next week's meeting, this time by a quarter point. Treasury futures extended lows and the 10-year yield climbed to 4.3005%. (See: MNI POLICY: Bumpy US Data Won't Take Fed Off Steady Course)