Economists Respond to Crucial X Inflation Report

TL/DR –

The US Commerce Department has reported that inflation has cooled more than expected. The personal consumption expenditures price index, which is the Federal Reserve’s preferred measure of prices, fell 0.1% last month, indicating that efforts by the Fed to hit a target rate of 2% inflation are working. Economists and other commentators have reacted to the report online, with several suggesting that the trend of low inflation could continue into 2024.

Inflation Cooldown Surpasses Expectations, New Report Reveals

A recent Commerce Department report indicates a greater-than-expected slowdown in inflation.

According to the personal consumption expenditures price index, the Federal Reserve’s favored pricing measure, prices fell by 0.1% last month. This demonstrates the Fed’s effective efforts to achieve a 2% inflation target rate.

Economists and other professionals have shared their reactions to the report on X, the social media platform previously known as Twitter. Here are some highlights:

Reactions to Inflation Report

“We got more stellar economic news this morning… core PCE inflation has returned to the Fed’s 2% target in recent months.” – Mark Zandi

“The underlying pace of inflation over the past half year now implies inflation is at or approaching tolerable levels…” – Joe Brusuelas

“The inflation measure the Fed targets (core PCE) has run at an annualized rate of 1.9% over the past six months, *below* the Fed’s two percent target.” – Justin Wolfers

“…there is mounting evidence that the post-pandemic inflation scare is over and we expect interest rates to be cut significantly next year.” – CapEconUS

“U.S. Consumer Sentiment is (finally) improving. Huge jump in December as Americans see inflation cooling…” – Heather Long

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