US inflation slows in October as consumers ease spending
US inflation eased as expected in the month of October, according to data released Thursday by the Bureau of Economic Analysis (BEA), which will provide some reassurance to the Federal Reserve that elevated interest rates are doing their job to cool economic growth and tame price pressures.
The personal consumption expenditures (PCE) index for October flatlined during the month after 0.4% growth in September, slightly below the 0.1% increase expected by analysts.
The year-on-year change in the PCE index slowed to 3.0%, as predicted and down from 3.4% the month before.
Meanwhile, the annual change in the core PCE – which excludes more volatile items like food and energy to give a more accurate gauge of inflationary pressures and as such is the Fed's preferred measure of inflation – slowed to 3.5% from 3.7%, in line with economists' forecasts.
The BEA data also showed that US personal incomes increased by 0.2% over the month of October as expected, slowing from 0.4% growth in September. Personal spending growth also eased to 0.2%, from 0.7% previously.