President Joe Biden said Thursday that Commerce Department data showing the personal consumption expenditures price index cooling is good news for the American people and shows the economic plan to bring inflation down is working. Biden is pictured Sept. 13 at the White House as he celebrated passage of the Inflation Reduction Act. Photo by Ken Cedeno/UPI | License Photo
Dec. 1 (UPI) -- In a sign that U.S. inflation is cooling, the core personal consumption expenditures price index for October rose 0.2% for the month, up 5% compared to a year ago. That's lower than September's rise of 0.5%.
The inflation numbers released Thursday by the Commerce Department's Bureau of Economic Analysis also showed personal income was up by 0.7% in October.
President Joe Biden said in a statement Thursday that these inflation numbers plus the 2.9% in GDP growth reported Wednesday are good news for consumers.
"We are seeing initial signs that we are making progress in tackling inflation, even as we make the transition to more steady, stable economic growth," Biden said in the statement. "That's good news for the American people, and further evidence that my economic plan is working."
The core PCE price index excludes volatile food and energy. When those prices are included, the PCE price index was up 0.3% for October, an increase of 6% over a year ago, according to the Commerce Department.
Biden said it will still take more time to bring inflation back to normal and there could be setbacks along the way. But he said the American people "should have confidence that our plan to tackle inflation, without giving up all the historic economic gains American workers have achieved, is working."
Job creation slowed in the U.S. economy to 127,000 new hires in November, according to ADP. That's down from 239,000 jobs created in October.
But Thursday's data is expected to give markets a boost despite the decline in job creation.
"This morning's data was a goldilocks report as it showed core inflation continuing to drop," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. "If inflation keeps coming down, then markets will keep running higher, as investors will conclude that the Fed won't need to raise rates as high, or keep them high for as long, as previously expected."