US Personal Consumption Inflation Steady In October
Mohammad Ali (@ChaudhryMAli88) Published November 30, 2016 | 08:15 PM
WASHINGTON, , (UrduPoint / Pakistan Point News - 30th Nov, 2016 ) - A key measure of US inflation held steady in October while income growth accelerated, outpacing the rise in consumer spending, the Commerce Department reported Wednesday.
The personal consumption expenditures price index, the measure of inflation most closely watched by the Federal Reserve, rose 0.2 percent over September, the same pace seen in the prior two months.
Core PCE inflation, which excludes the more volatile food and fuel prices, was also steady, increasing just 0.1 percent, matching a consensus analyst forecast. The results come as market players almost unanimously expect the central bank to raise interest rates next month, the first rate hike in a year.
The Fed held off raising rates this year over fears of disrupting a fragile recovery, and also because inflation as measured by the PCE price index has remained below the two percent target.
The data also showed personal income gained 0.6 percent to $98.6 billion in October, the largest monthly gain since April.
Spending increased 0.3 percent for the month to $38.1 billion, slowing from the 0.7 percent rise in September. Year-on-year changes showed a more discernable trend, however, with the PCE price index rising two tenths to 1.4 percent compared to October last year.
The index has risen steadily since the 0.8 percent rise recorded in July. However, excluding food and fuel, core PCE was steady, rising by 1.7 percent year-over-year, as it did in August and September.
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