The U.S. Department of Commerce reported that personal consumption spending and the PCE price index rose 6.2% yoy in September and 0.3% month-over-month, respectively.
The rate of increase compared to the same month of the previous year is the same as in August, and the rate of increase compared to the previous month is in line with the forecasts of the experts, so it is analyzed that the inflation rate has not stopped.
Despite inflation, US consumer spending rose 0.6% in September from the previous month, beating consensus of 0.4%.
Consumers continue to open their wallets despite price increases because wages have risen accordingly.
The U.S. Department of Labor’s Third-Quarter Labor Cost Index (ECI), released on the same day, rose 1.2%, keeping it close to 1.3% in the second quarter.
Therefore, the Fed is likely to raise interest rates by 0.75 percentage points in the fourth consecutive giant step at the regular meeting of the Federal Open Market Committee to be held next week in November.
There are also observations that the rate of increase will be adequate from December due to the side effects of a rapid rate hike and concerns about an economic downturn.
YTN Lee Sang-soon ([email protected])
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