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flag Core inflation eased slightly in September, supporting hopes for a Fed rate cut.

flag Core inflation, as measured by the Fed's preferred PCE index, rose 2.8% annually in September, slightly below expectations, with the core rate also at 2.8%, down from 2.9% in August. flag The overall PCE index increased 0.3% month-over-month, matching August’s rise. flag Consumer spending rose 0.3%, while personal income grew 0.4%, exceeding forecasts. flag Despite persistent inflation, particularly in durable goods, the data suggest inflation is stabilizing, supporting expectations of a 25-basis-point rate cut at the upcoming Federal Reserve meeting. flag The report was delayed due to the government shutdown.

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