Key US inflation gauge cools in November
A measure of inflation favoured by the US Federal Reserve weakened in November on lower energy prices, government data showed on Friday, providing further reassurance to policymakers keen to rein in price increases. The personal consumption expenditures (PCE) price index rose 2.6 percent from a year ago in November, markedly below October's 2.9 percent figure, the Department of Commerce said. Compared with a month ago, the index decreased 0.1 percent, on the back of a slump in energy prices and lower food costs. With the volatile food and energy segments removed, "core" PCE inflation cooled to an annual rate of 3.2 percent, down slightly from October as well. This adds to data indicating that inflation is coming down as the US central bank holds interest rates steady at a 22-year high in a bid to firmly lower inflation back to its long-term two percent target. With consumption and the jobs market remaining relatively resilient, hopes of a so-called "soft landing" where inflation comes down without triggering a damaging recession have risen. Friday's numbers also showed that consumption ticked up 0.2 percent from a month prior in November, while personal incomes increased too. From October to November, the core PCE price index inched up 0.1 percent, according to the Commerce Department. (AFP)