#PCEInflationWatch In December 2024, the U.S. Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation measure, increased by 0.3%, up from 0.1% in November. This brought the annual PCE inflation rate to 2.6%, exceeding the Fed's 2% target. Core PCE, which excludes food and energy prices, rose by 0.2% in December, maintaining a 2.8% annual rate for the third consecutive month. These figures suggest persistent inflationary pressures, leading analysts to anticipate that the Federal Reserve may delay interest rate cuts in the near term.