Inflation pressures eased last month, while consumers lifted their foot off the gas pedal, according to Commerce Department data released Thursday.
The core Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation gauge, which excludes volatile gas and food prices, rose 0.2% last month and 3.5% for the year ended in October.
That’s right in line with economists’ expectations.
The core PCE price index is at its lowest annual rate since April 2021, marking another step toward the Fed’s target of 2% inflation.
When including gas and food prices, the overall PCE index was unchanged last month and rose 3% annually.
The Commerce Department’s latest Personal Income and Outlays report also showed that consumers reined in some spending in October. Consumer expenditures increased 0.2% last month, a marked pullback from the 0.7% jump seen in September.
This story is developing and will be updated.
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