U.S. consumer inflation got closer to the Federal Reserve’s 2% target in September 2024 when year-on-year total Personal Consumption Expenditure inflation fell to 2.1%.

Inflation continued to close in on the Federal Reserve’s 2% annual target in September, even as the monthly pace of price growth ticked higher. An interest-rate cut at the central bank’s Nov. 6-7 meeting remains the most likely outcome as all eyes shift to Friday’s October jobs data.

PCE inflation for goods in September 2024 was lower at -1.2% compared to -0.9% in August 2024. Within goods, the durable goods showed further improvement from -2.2% to -1.9% while the inflation in non-durable goods dipped sharply by 60 bps from -0.2% to -0.8%. It is down 180 bps in the last 2 months.