US September core PCE lower than expected, giving green light for further Fed rate cuts.

A key inflation indicator released by the US Department of Commerce on Friday showed that the inflation rate in September was lower than expected. This delayed report, due to the government shutdown, further signals approval for the Federal Reserve to cut interest rates. Federal Reserve officials use the PCE price index as the main policy tool to measure inflation. Although officials will also consider overall and core data, they generally believe that core data is a better indicator of long-term inflation trends. The report was delayed by several weeks due to the government shutdown, during which all data collection and economic reports were suspended.