Reading falls 0.1 percentage point short of market estimate of 3.7%

Core PCE rises 3.1%, in line with expectations

Federal Reserve Chair Kevin Warsh answers reporters' questions after an FOMC meeting at the New York Fed headquarters on Wednesday (local time). This photo is not directly related to the article. [AP]
Federal Reserve Chair Kevin Warsh answers reporters' questions after an FOMC meeting at the New York Fed headquarters on Wednesday (local time). This photo is not directly related to the article. [AP]

The personal consumption expenditures (PCE) price index — the Federal Reserve's preferred inflation gauge for monetary policy decisions — came in slightly below market expectations in September.

According to the US Commerce Department on Thursday (local time), the PCE price index rose 3.6 percent from a year earlier in September, falling 0.1 percentage point short of the 3.7 percent consensus forecast compiled by Dow Jones. On a monthly basis, the index rose 0.5 percent, in line with market expectations.

The core PCE price index, which strips out volatile energy and food prices, rose 3.1 percent year-on-year and 0.3 percent from the previous month — both figures matching analyst forecasts.

The Fed uses the PCE price index as a key benchmark when assessing progress toward its 2 percent inflation target.


hajun825@heraldcorp.com