Inflation Surges in US as Spending and Core PCE Prices Rise

The US core personal consumption expenditures (PCE) price index, a key measure of underlying inflation, rose to a four-month high in September, while consumer spending increased, potentially paving the way for another interest rate hike. The core PCE price index, which excludes food and energy components, increased by 0.3% in September, and inflation-adjusted consumer spending rose by 0.4%. The data suggests that the Federal Reserve needs to remain vigilant for higher core inflation prints before the end of the year. While economists expect consumer spending to slow down, strong data could influence the Fed's decision to tighten monetary policy.