Fed officials had been hoping this fall for a clean downtrend in inflation, allowing them to focus more fully on preventing an economic downturn. The data hasn't cooperated. Over the 12 months through October,

The Federal Reserve’s preferred inflation measure remained above the central bank’s 2% target pace in the year through October, as progress on slowing price growth appears to have stalled in late 2024.

The Commerce Department released data showing that PCE inflation ticked higher in October, though the Federal Reserve's preferred inflation gauge remained near last month's level.

The core version of the Fed’s preferred 12-month inflation gauge ticked back up to 2.8% as expected last month.

The Federal Reserve’s preferred measure of underlying inflation accelerated in October from a year ago, helping explain policymakers’ more cautious approach to lowering interest rates.

The rise in PCE inflation comes after the consumer price index also posted an annual increase, its first uptick in inflation in six months.

The core PCE inflation measure is half of its 2022 peak, but it’s higher than it ever was from 1994 to 2020 as price increases continue to plague consumers.

Key Takeaways Inflation as measured by Personal Consumption Expenditures likely reaccelerated in October, according to forecasts of the report due Wednesday.Housing has kept overall inflation elevated even though other things have fallen back to pre-pandemic inflation rates.