A report released by the Commerce Department Friday shows inflation has cooled more than economists expected. 

The personal consumption expenditures price index, the Federal Reserve’s preferred measure of prices, fell 0.1% last month, indicating efforts by the Fed to get to the target rate of 2% inflation is working.

Here's how economists and others reacted to the report on X, formerly Twitter.

We got more stellar economic news this morning. Consumers are hanging tough, spending at close to a 2% real pace - strong enough to propel the economy forward but not so strong it fans inflation. Indeed, core PCE inflation has returned to the Fed’s 2% target in recent months.

— Mark Zandi (@Markzandi) December 22, 2023

“.. The underlying pace of inflation over the past half year now strongly implies that inflation is at or approaching tolerable levels which should translate in to continued inflation adjusted wage gains that will sustain the economy throughout 2024.”

- @joebrusuelas pic.twitter.com/zbZEz91ggZ

— Carl Quintanilla (@carlquintanilla) December 22, 2023

Are we there yet?

Yes kids, we are: The inflation measure the Fed targets (core PCE) has run at an annualized rate of 1.9% over the past six months, *below* the Fed's two percent target.

This isn't a one-off blip; it's six months of sustained low inflation.

— Justin Wolfers (@JustinWolfers) December 22, 2023

" ... with core PCE inflation running at an annualised pace of below 2% over the past six months ... [there] is mounting evidence that the post-pandemic inflation scare is over and we expect interest rates to be cut significantly next year." @CapEconUS

— James Pethokoukis (@JimPethokoukis) December 22, 2023

Is this a turning point??

U.S. Consumer Sentiment is (finally) improving. Huge jump in December as Americans see inflation cooling.

Note the really big jump in people hearing "favorable news" (blue line) about the economy.

(Still...sentiment is only at early 2010 levels) pic.twitter.com/eVgyNrBw6c

— Heather Long (@byHeatherLong) December 22, 2023

All it took was 2.5 years, 525 basis points worth of rate hikes, and a very small banking crisis for the elevated inflation that people said would disappear in a matter of months to likely but not certainly be behind us. https://t.co/kmNzAvqmcc

— Marc Goldwein (@MarcGoldwein) December 22, 2023

If I must be 100% honest. I can’t say for certain that the Inflation Reduction Act is what caused inflation to reduce.

But I do think that an energy investment bill being called The Inflation Reduction Act is the legislative equivalent of a magazine cover jinx. https://t.co/TX7pUNQTk3

— Joe Weisenthal (@TheStalwart) December 22, 2023

I understand why everyone is nervous, even I am. But the reality is that the inflation picture has shifted dramatically, exactly as a 'soft landing' and the experience of reopenings predicted.

It's time for the Fed to balance its mandates now, lest it blow this historic win. 8/8

— Mike Konczal (@mtkonczal) December 22, 2023