Money changes hands at a Best Buy Co. store in Louisville, Kentucky on November 23, 2017. Photographer: Luke Sharrett/Bloomberg

The Federal Reserve’s preferred measure of underlying inflation accelerated to a four-month high in September, and consumer spending picked up, keeping the door open to another interest-rate hike in the months ahead.

The core personal consumption expenditures (PCE) price index, which strips out the volatile food and energy components, rose 0.3 percent in September, according to the Bureau of Economic Analysis (BEA) report out Friday. Inflation-adjusted consumer spending jumped 0.4 percent last month.

Resilient household demand, paired with a pickup in inflation, underscores momentum heading into the fourth quarter. While economists generally expect consumer spending to slow in the coming months, Fed officials have warned that strong data could lead them to keep tightening.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?


NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.