Key US Inflation Gauge and Spending Pick Up in Solid Economy
- PCE prices excluding food and energy rose 0.3% in September
- Consumers spent more on goods, supported by further wage gains
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The Federal Reserve’s preferred measure of underlying US inflation posted its biggest monthly gain since April, bolstering the case for a slower pace of interest-rate cuts following last month’s outsize reduction.
The so-called core personal consumption expenditures price index, which strips out volatile food and energy items, increased 0.3% in September, and 2.7% from a year earlier, according to Bureau of Economic Analysis data out Thursday. Overall inflation was 2.1%, the lowest since early 2021 and just above the central bank’s 2% goal.