Search
 
News

U.S. Core CPE Jumps Most in 4 Months

Resilient household demand, paired with a pickup in inflation, created momentum heading into the fourth quarter.

By Reade Pickert | October 27, 2023 at 05:37 PM
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.

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.

 

Recommended Stories

Inflation and Labor Are Cooling

Inflation and Labor Are Cooling

Augusta Saraiva |

Fed rate hikes are on hold for now, but some think inflation and the soft job market will lead to cuts in the near future.

Global Bonds Power Ahead

Global Bonds Power Ahead

Rita Nazareth |

Dovish bets take hold, with soft economic readings in both the U.S. and Europe fueling speculation that central banks will cut rates in 2024.

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.