U.S. inflation rose in September, with the annual personal consumption expenditures (PCE) price index reaching 3.6%, above the Federal Reserve’s 2% goal, the Bureau of Economic Analysis (BEA) said Thursday.
The overall index increased 0.5% from August, when prices rose 0.3% month over month. Its annual rate had been 3.4% in August.
Core PCE, which excludes food and energy, rose 0.3% from August and 3.1% from a year earlier. In August, the corresponding increases were 0.2% and 3.0%. EconoTimes previously covered September’s core PCE reading.
The Federal Reserve’s longer-run inflation goal is 2%, measured by the annual change in the PCE price index. The Fed says the measure adjusts more quickly than the consumer price index as household spending patterns change.
The BEA’s next Personal Income and Outlays report, which includes October PCE data, is scheduled for Nov. 25 at 8:30 a.m. EST.
