Inflation has eased significantly from its highs in mid 2022 but remains somewhat elevated relative to our 2% longer run goal.

Very little data on inflation have been released since our meeting in October.

Total PCE prices rose 2.8% over the 12-months ending in September, and core PCE prices also rose 2.8%.

These readings are higher than earlier in the year as inflation for goods has picked up, reflecting the effects of tariffs.

In contrast, disinflation appears to be continuing for services.

Near-term measures of inflation expectations have declined from their peaks earlier in the year, as reflected in both market and survey-based measures.

Most measures of longer-term expectations remain consistent with our 2% inflation goal.