The Federal Reserve’s preferred inflation measure—the personal consumption expenditure (PCE) price index—edged up in October as services continued to fuel price pressures.
According to the Bureau of Economic Analysis (BEA), annual PCE price index inflation rose to 2.3 percent last month from 2.1 percent in September. The index jumped by 0.2 percent monthly and aligned with the consensus forecast.
Core PCE inflation, which omits the volatile energy and food categories, ticked up to 2.8 percent, up from 2.7 percent. This, too, was in line with market estimates. Core PCE increased by 0.3 percent from September to October.
Prices for goods tumbled by 0.1 percent, and prices for services surged by 0.4 percent. From the same time a year ago, costs for goods declined by 1 percent, and prices for services advanced by 3.9 percent….