WASHINGTON (dpa-AFX) - A closely watched report released by the Commerce Department on Thursday showed consumer prices in the U.S. increased in line with economist estimates in the month of September.
The Commerce Department said its personal consumption expenditures (PCE) price index climbed by 0.5 percent in September after rising by 0.3 in August. The increase matched expectations.
The report also said the annual rate of growth by the PCE price index accelerated to 3.6 percent in September from 3.4 percent in August, while was also in line with estimates.
Excluding food and energy prices, the core PCE price index rose by 0.3 percent in September, matching an upwardly revised increase in August as well as expectations.
The annual rate of growth by the core PCE price index ticked up to 3.1 percent in September from 3.0 percent in August. The uptick also came in line with economist estimates.
'Inflation moved away from the Federal Reserve's 2% target in September,' said Bernard Yaros, Deputy Chief U.S. Economist at Oxford Economics. 'Spillovers from higher energy costs into core prices, along with strong AI investment demand, will keep the central bank on guard, with two more hikes in store.'
He added, 'However, an eventual descent in energy prices and a noninflationary labor market will hold down price pressures by the end of next year.'
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The report said personal income crept up by 0.2 percent in September after rising by an upwardly revised 0.3 percent in August.
Economists had expected personal income to increase by 0.3 percent compared to the 0.2 percent uptick originally reported for the previous month.
Meanwhile, the Commerce Department said personal spending climbed by 0.5 percent in September after jumping by 0.9 percent in August. The increase matched economist estimates.
Real personal spending, which excludes price changes, inched up by less than a tenth of a percent in September after rising by 0.5 percent in August.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
