December PCE shows U.S. inflation beginning to cool

(Washington, DC)  --  A key inflation indicator shows prices easing as 2023 came to a close.  

December's PCE price index shows prices rose two-tenths of a percent for the month and were up 2.9% on a yearly basis. Including volatile food and energy costs, inflation held steady at 2.6% for the year.  

Experts say the reading makes it more likely the Federal Reserve will start cutting interest rates later in the year.