UPDATE - US Fed's inflation indicators soften in November

ADDS BIDEN'S COMMENTS

By Ovunc Kutlu

ISTANBUL (AA) - The US Federal Reserve's preferred and most reliable inflation indicators softened in November, according to data released Friday by the Commerce Department.

The personal consumption expenditures (PCE) price index rose 5.5% in November but slowed from the annual gain of 6.1% in October.

It increased just 0.1% in November, cutting pace from a 0.4% gain in October.

The core PCE price index, which excludes food and energy prices, rose 4.7% annually in November, also slowing from a 5% year-on-year gain in October.

The figure showed a gain of 0.2% in November, also decelerating from a 0.3% increase in October.

Both indexes are closely watched by the Fed, and softening data could pave the way for the central bank to take its foot off the throttle in rate hikes early next year.

The Fed raised interest rates by 50 basis points last week after they were hiked by 75 basis points four consecutive times to fight inflation.

President Joe Biden said the data reflects signs of the American economy recovering and remaining resilient.

"Today’s report shows that incomes are up and inflation is coming down – while our job market remains strong," he said in a statement. "Christmas arrives with gas prices down and grocery store prices showing the lowest increase in a year.

"There will be more ups and downs in the year ahead, but we are making progress building an economy from the bottom up and the middle out and I’m optimistic for the year ahead," he added.