Fed's Preferred Inflation Gauge Accelerates in October
Headline PCE prices rose 0.5% in September, matching forecasts. Annual inflation climbed to 3.6%, the highest since May.
3.1% annual core PCE, up slightly and in line with forecasts.
0.3% monthly core increase, which excludes food and energy.
Energy prices within PCE reached a record high after crude rebounded.
Services inflation excluding shelter hit its highest annual rate since December 2024.
Why it matters: Incomes rose more slowly than spending, cutting into what households set aside. The personal savings rate fell to its lowest since October 2022.
0.2% income growth, short of the 0.5% forecast.
0.5% spending growth, just below the 0.6% forecast.
