Inflation & Prices
US Inflation Indicator Rises by Less Than Forecast as Spending Increases
- Inflation gauge excluding food and energy rose 0.2% in October
- Real spending accelerated by the most since start of year
A grocery store in New York.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
A key gauge of US consumer prices posted the second-smallest increase this year while spending accelerated, offering hope that the Federal Reserve’s interest-rate hikes are cooling inflation without sparking a recession.
The personal consumption expenditures price index excluding food and energy, which Fed Chair Jerome Powell stressed this week is a more accurate measure of where inflation is heading, rose a below-forecast 0.2% in October from a month earlier, Commerce Department data showed Thursday.