PCE inflation rate inched up to 2.8% after government shutdown

By Indradip Ghosh BENGALURU, Jan 21 (Reuters) - The U.S. Federal Reserve will hold its key interest rate through this quarter and possibly until Chair Jerome Powell's tenure ends in May, according to a majority of economists polled by Reuters,

Interest rates are likely to edge lower in 2026 as the Fed weighs inflation, jobs and political pressure. See what forecasts suggest for the year ahead.

Inflation rose to 2.8% in November with strong consumer spending, indicating a robust economy, while the Fed is unlikely to cut interest rates soon.

We're finally about to learn how much consumer prices rose back in November, according to the Federal Reserve's favorite measure of inflation.

Food inflation has been relatively moderate though in recent years compared with the steep rise in grocery costs in 2022. The surge in prices at the time was largely the result of a mix of supply and demand pressures, many tied to the pandemic and other global events.

U.S. inflation held at 2.7% in December, with shelter, food, and energy driving monthly gains as Fed weighs rate policy.

After cutting interest rates three times in a row last year, the Federal Reserve indicated last month it probably won’t lower interest rates again for a while. A months-long pause, cemented by key economic data released Friday,

Inflation improved in October before rising again in November, according to delayed federal data released Thursday, as the Federal Reserve’s favored inflation gauge aligned with Wall Street’s expectations.