On an annual basis, the index rose by 5%, following rising by 5.2% in September, which was revised up.
The overall personal consumption expenditures price index rose 0.3% for the third month, up 6% from a year ago, still well above the central bank’s target of 2%.
Personal spending increased by 0.5% in October, following adjusting for changes in prices, marking the largest increase since the beginning of the year, largely reflecting the increase in spending on goods and merchandise.
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Awaiting more evidence
Similar to last month’s CPI data, the report shows that although inflation has begun to ease, it is still very high. While a slowdown is certainly welcome, Federal Reserve Chairman Jerome Powell confirmed on Wednesday that prices in the US are still far from stable and that it would take “more evidence” to say that inflation is indeed declining.
Monetary policy makers are expected to continue raising interest rates next year, albeit at a slower pace than in the current year, and for interest rates to remain constrained for some time.
The median estimate in a Bloomberg survey of economists had indicated a monthly increase of 0.3% in the core personal consumption expenditures price index, and a 0.4% increase in the general index.