- England return to winning ways in Nations League, Austria thrash Norway
- UN chief says attacks on UNIFIL 'may constitute a war crime'
- Ravens outlast Commanders while Bucs batter Saints in NFL
- Dozens hurt in Israel as Hezbollah claims drone strike
- England deserve 'world class' coach: Carsley
- Burkina Faso win to become first qualifiers for 2025 AFCON
- AC Milan's Pulisic among five out for USA match in Mexico
- France's Amandine Henry retires from international football
- Centre-left set to win pro-Ukraine Lithuania's vote
- India's World Cup hopes in Pakistan hands after Australia defeat
- Zelensky says NKorea sending troops to Russian army
- England beat Finland to get back on track
- King and Lewis propel West Indies to T20 triumph over Sri Lanka
- Pre-Halloween 'Terrifier' lands atop North America box office
- 'I still plan to compete and play next season,' says Djokovic
- Harris, Trump seek advantage in knife-edge election battle
- Chepngetich shatters women's marathon world record in Chicago
- Kamindu and Asalanka power Sri Lanka to 179 against West Indies
- Chepngetich shatters women's marathon world record as Korir wins in Chicago
- Spain send injured Yamal home 'to prioritise player's health'
- In milestone, SpaceX 'catches' megarocket booster after test flight
- Iraq walks fine line with pro-Iran factions to avoid war
- Race four abandoned after New Zealand breeze into 3-0 lead in America's Cup
- West Indies win toss, put Sri Lanka in to bat in first T20
- Sudan rescuers say air strike killed 23 in Khartoum market
- Netanyahu tells UN to move Lebanon peacekeepers out of 'harm's way'
- Bangladeshi Hindus defy attack worries to celebrate festival
- Kiwis three up in America's Cup as Ineos pay for time penalty
- In a first, SpaceX 'catches' megarocket booster after test flight
- Dominant England crush Scotland at Women's T20 World Cup
- Dropped: The rise and fall of Pakistan batting maestro Babar Azam
- Israel fights Hezbollah on the ground, pounds Lebanon from the air
- Sabalenka outlasts local hero Zheng to win third Wuhan Open title
- Bangladeshi Hindus shrug off attack worries to celebrate festival
- Former Pakistan captain Azam dropped for second England Test
- 'Opportunist' Dupont dazzles on Toulouse return
- Australia replace injured Vlaeminck with Graham at Women's T20 World Cup
- Sinner wins Shanghai Masters to deny Djokovic 100th career title
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- Israel hits Lebanon from the air and fights Hezbollah on the ground
- China's Yin has 'goosebumps' as she romps to LPGA win in Shanghai
- Pakistan to re-use Multan pitch for second England Test
- Blair and King Charles hail Salmond's 'devotion' to Scotland
- Vietnam, China hold talks on calming South China Sea tensions
- SpaceX will try to 'catch' giant Starship rocket shortly before landing
- England captain Stokes in line for second Pakistan Test return
- Japan's former empress Michiko discharged after surgery: reports
- Japan's former empress Michiko discharged after surgey: reports
- Israel widens Lebanon strikes as troops fight Hezbollah along border
- Bowlers' graveyards: Pakistan's placid pitches under fresh fire
Key US inflation gauge cools in November as rate cut looms
A measure of inflation favored by the US Federal Reserve weakened in November on lower energy prices, government data showed Friday, providing further reassurance to policymakers keen to rein in price increases.
The personal consumption expenditures (PCE) price index rose 2.6 percent from a year ago in November, markedly below October's 2.9 percent figure, the Department of Commerce said.
Compared with a month prior, the index decreased 0.1 percent -- the first drop since early 2020 -- on the back of a slump in energy prices and lower food costs.
"Today marks a significant milestone, with inflation over the last six months at the pre-pandemic level of two percent," US President Joe Biden said in a statement.
With the volatile food and energy segments removed, "core" PCE inflation cooled to an annual rate of 3.2 percent, down slightly from October as well.
This adds to data indicating that inflation is coming down as the US central bank holds interest rates at a 22-year high to firmly lower inflation back to its long-term two percent target.
With consumption and the jobs market remaining relatively resilient, hopes of a so-called "soft landing" where inflation comes down without triggering a damaging recession have risen.
Biden added: "A year ago, most forecasters predicted it would require a spike in joblessness and a slowdown to get inflation down. I never believed that."
But he warned that the government's work is "far from finished," with many households still squeezed by elevated costs -- vowing to urge companies to pass on savings as prices moderate.
- 'Encouraging' -
Calling the data "encouraging reading," economist Michael Pearce of Oxford Economics said they signaled that consumption growth is slowing to a more sustainable pace while pressures from inflation melt away.
Friday's numbers also showed that consumption ticked up 0.2 percent from a month prior in November, while personal incomes increased too.
A bounce in payroll growth and robust wage increases helped push personal incomes up, with spending rising as well.
"That allowed the personal saving rate to rise a bit," Pearce added. "We think households will continue to rebuild saving into next year."
From October to November, the core PCE price index inched up 0.1 percent, the Commerce Department said.
- Rate cuts on horizon -
"Barring some unforeseen shock to prices, the Fed is done raising rates this cycle and the expansion should continue well into the New Year," said economist Robert Frick of the Navy Federal Credit Union.
Pearce added that with price pressures "weakening fastest in the services sector and with inflation set to fall further over the coming months, rate cuts are coming into view."
But even as the data fuels optimism, Pantheon Macroeconomics chief economist Ian Shepherdson warned of the risks that inflation falls below officials' target more quickly than expected.
"Against that backdrop, markets will push even harder for the Fed to ease by more than their current 75 basis points forecast next year, and policymakers will have little choice but to follow their lead," he said.
S.Gregor--AMWN