US inflation rises in September as spending edges up
In short
US inflation picked up in September.
The report says the PCE price index rose to 0.5% from 0.3%, while consumer spending rose 0.5%. The Federal Reserve left rates unchanged, and a December hike is only a possibility.
What the reporting says
US inflation rose in September, with the Personal Consumption Expenditures Price Index climbing to 0.5% from 0.3%, while inflation-adjusted consumer spending stayed flat and nominal spending rose 0.5%. The report says gasoline prices and other consumer goods drove the increase, and the Federal Reserve kept interest rates steady. It also says analysts now expect a possible December rate hike, though that is not confirmed.
Why it matters
US inflation picked up in September, with the Personal Consumption Expenditures Price Index rising to 0.5% from 0.3% and consumer spending up 0.5% despite flat inflation-adjusted spending. The summary says gasoline and other consumer goods were the drivers. The Federal Reserve kept rates steady, and markets may now weigh whether inflation pressures are strong enough to justify a December hike.