The Federal Reserve’s favorite inflation gauge showed higher prices holding in September even as core inflation rose slightly, according to the latest data from the Bureau of Labor Statistics.
Y-O-Y: The PCE price index held at 6.2% when compared to September 2021
M-O-M: The PCE price index was up 0.3% when compared to the prior month.
Core Inflation. Unfortunately, core inflation reported a bigger jump in September with a 0.5% increase in September when compared to the prior month.
- Year-over-year inflation was up to 5.1%, this is higher than the 4.9% reported in August but lower than economist predictions of 5.2%.
Income & Spending. Personal income and spending were both up for the month with income up 0.4% to $78.9B and spending up 0.6% to $113B.
Savings. The personal savings rates fell for the second consecutive month with a drop to 3.1%, or $581.6B, down from 3.4% the prior month.
BOTTOM LINE: It’s a little worrying that the benefits of falling gas prices are being offset by a rise in core inflation which I can almost guarantee also worries the Fed.