Less than 24 hours after the Federal Reserve decided to hold interest rates flat in the face of growing inflation pressures and upcoming midterm elections, newly published government estimates show consumer prices continued to move in the wrong direction for the U.S. central bank in September.
The personal consumption expenditures (PCE) price index jumped 0.5% last month, exceeding August's 0.3% increase, according to the Bureau of Economic Analysis. The Fed’s preferred inflation gauge was 3.6% higher on a 12-month basis compared to 3.4% the prior month.
“While this increase was certainly impacted by the recent spike in oil prices, core PCE inflation remained at 3.1%, still well above the Fed’s target of 2%,” flagged Mike Fratantoni, chief ...