An important measure of consumer prices united statethe second smaller increase this year, at a time of accelerating spending, which bolsters hopes for a hike interest rates which the council does Federal reserve It really calms down inflation without driving the economy into a recession.
The US Department of Commerce on Thursday released data that the Personal Consumption Expenditure (PCE) price index excluding food and energy, which Federal Reserve Chairman Jerome Powell stressed this week is a more accurate measure of the inflation trends, rose 0.2% in October from the previous month , less than expected.
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On an annual basis, the index rose by 5%, after +5.2% in September, revised upwards.
The overall price index of personal consumption spending rose 0.3% for the third month, up 6% from a year ago, still well above the central bank’s 2% target.
Personal spending increased by 0.5% in October, excluding price changes, marking the largest increase since the beginning of the year, largely reflecting higher spending on goods and merchandise.
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Similar to last month’s CPI data, the report shows that although inflation has started to ease, it is still very high. While a slowdown is certainly welcome, Federal Reserve Chairman Jerome Powell confirmed on Wednesday that prices in the US are still far from stable and that it would take “more evidence” to say that inflation is indeed declining.
Monetary policymakers are expected to continue raising interest rates next year, albeit at a slower pace than this year, and interest rates are expected to remain subdued for some time.
The median estimate in a Bloomberg survey of economists had indicated a 0.3% monthly increase in the basic personal consumption spending price index and a 0.4% increase in the broad index.
