The Federal Reserve may not have received the inflation data it wanted Thursday, but some economists said a new reading from the Fed's preferred pricing gauge probably keeps the central bank on track for a 25 basis point rate cut at its policy meeting next week.

Quincy Krosby, chief global strategist for LPL Financial, said she still expects a small rate reduction to be announced Nov. 7 while emphasizing that the mixed inflation picture offered Thursday suggests "that the Fed is still on a bumpy course in this last mile to quell inflation and declare victory."

Other economists who also expect a small cut in November acknowledged there could be a debate among policymakers about whether to pause in November. It will be up to Fed Chair Jerome Powell to maintain a rate-cutting consensus, said one Fed watcher.

"We look for Fed Chair Powell to once again be the voice of reason corralling the FOMC to prudently ease monetary policy next week," said EY chief economist Gregory Daco.

The latest reading from the Personal Consumption Expenditures (PCE) index showed inflation rose 2.1% during the month of September, compared with 2.3% in August — within shouting distance of the Fed’s 2% goal.

But the Fed favors looking at inflation on a "core" basis, which excludes volatile food and energy prices. On that metric, inflation clocked in at 2.7%, holding the same level as August. That was slightly higher than expectations of a slight cooling to 2.6%.

Month over month, core prices were a little hotter than the previous month, up 0.3% vs 0.2%, though matching expectations.

The reading on PCE comes after a separate reading on inflation, known as the Consumer Price Index, was warmer than expected during the month of September.

The new data could offer more fodder for an argument being made by hawkish members of the Fed's Federal Open Market Committee to pursue any future cuts gradually and cautiously. Core PCE, after all, has now held at 2.7% for three months in a row, as opposed to dropping.

Next week “the Fed will need to acknowledge that with still resilient consumer spending, higher wages from a series of successful strikes, and a solid labor market, they will need to adopt the 'gradual' approach towards lowering rates until there's a comfort level within the FOMC that inflation isn't poised to continue edging higher," Krosby said.

In the weeks following that September cut, a chorus of officials stressed a need to cut rates "gradually" going forward, including Fed governor Chris Waller and Dallas Fed president Lorie Logan.