US September Core PCE Falls Short of Expectations, Green Light for Further Fed Rate Cuts According to Jin10, a key inflation indicator released by the US Department of Commerce on Friday showed that September's inflation rate was lower than expected. This report, delayed due to the government shutdown, gives the Federal Reserve further green light for rate cuts. The core PCE price index, which excludes the more volatile food and energy prices, rose 0.2% month-over-month and 2.8% year-over-year. While the monthly rate met general expectations, the annual rate was 0.1 percentage points lower than anticipated. Additionally, data from the US Department of Commerce's Bureau of Economic Analysis showed that overall personal consumption expenditures rose 0.3% month-over-month, with an annual inflation rate also at 2.8%. Both figures were in line with expectations. Federal Reserve officials use the PCE price index as a primary policy tool to measure inflation. While they consider both overall and core data, they generally view core data as a better indicator of long-term inflation trends. This report was delayed by several weeks due to the government shutdown, during which all data collection and economic reporting were suspended.