Inflation continues to rise but at a slower pace than many anticipated. The latest economic data from the Commerce Department's Bureau of Economic Analysis shows that the Personal Consumption Expenditures price index increased by 6% in October compared to last year.
Prices increased by 0.3% from September to October for the second straight month.
The core PCE, which removes food and energy prices, jumped by 5% over the last year and 0.2% from September. That is lower than the previous month, which saw a month-on-month increase of 0.5%.
Stocks were down after the data was released, with the Dow Jones, Nasdaq, and S&P 500 all slipping into the red in early morning trading.
The new data comes one day after Federal Reserve Chairman Jerome Powell suggested that the central bank may pull back on the aggressive rate hikes in December.
"This morning's data was a goldilocks report as it showed core inflation continuing to drop," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, according to CNBC. "If inflation keeps coming down, then markets will keep running higher, as investors will conclude that the Fed won't need to raise rates as high, or keep them high for as long, as previously expected."