Last, Most Important Inflation Measure before the Fed’s Meeting Next Week, “Core PCE,” Worsened for 2nd Month in a Row | Wolf Street

In terms of the Fed’s 2% inflation target as measured by core PCE, inflation is worsening and now measures over 2.5 times the Fed’s target.On a month-to-month basis, the “core PCE” price index jumped by 0.5% in September from August. This is in the range of the highest inflation readings in this cycle, and in the range of the red-hot inflation in the late 1970s and early 1980s, and another sign that underlying inflation is just not slowing down, though it varies from month to month:

Based on today’s core PCE measure, and on other measures too, including core CPI and services CPI, the Fed has gotten all the ammo it needs to lift its policy rates by 75 basis points next week, and lift them further in December, and next year.

Last, Most Important Inflation Measure before the Fed’s Meeting Next Week, “Core PCE,” Worsened for 2nd Month in a Row | Wolf Street