Story perspectives

Fed's Inflation Gauge Rises Amid Resilient Consumer Spending

1/22/2026

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Summary

Story summary

The Federal Reserve's inflation gauge, the Personal Consumption Expenditures price index, rose 2.8% year over year in November.
The Commerce Department reported a 0.2% month-over-month increase for October and November.
Consumer spending rose 0.5% in November, signaling a resilient economy.
Economists expect the Fed to hold rates at its meeting amid growth and low unemployment.
The savings rate fell to 3.5% in November, with concerns about disposable incomes.

History

Historical Context

The Personal Consumption Expenditures (PCE) index, a key inflation measure, rose significantly during the Great Recession in 2008, peaking at 3.8%. In response, the Federal Reserve lowered interest rates to near zero, influencing consumer behavior. Today, a 2.8% year-over-year increase in the PCE index highlights ongoing economic resilience, echoing past challenges and underscoring the Fed's vital role in maintaining economic stability.

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Story summary

The Federal Reserve's inflation gauge, the Personal Consumption Expenditures price index, rose 2.8% year over year in November.
The Commerce Department reported a 0.2% month-over-month increase for October and November.
Consumer spending rose 0.5% in November, signaling a resilient economy.
Economists expect the Fed to hold rates at its meeting amid growth and low unemployment.
The savings rate fell to 3.5% in November, with concerns about disposable incomes.

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