U.S. inflation rises 3.6% in September, below market expectations

[Financial News correspondent Lee Byung-chul in New York]  The Personal Consumption Expenditures (PCE) price index, the inflation gauge the Federal Reserve (Fed) considers most important, rose 3.6% year over year in September. Although it came in slightly below market expectations, it remained well above the Fed’s 2% inflation target, indicating that inflationary pressures persist.
The U.S. Commerce Department said on the 29th, local time, that the PCE price index rose 3.6% year over year in September. That was 0.1 percentage point below the market forecast of 3.7%. Month over month, it rose 0.5%, in line with expectations.
The core PCE price index, which excludes volatile energy and food prices, rose 3.1% year over year and 0.3% month over month. Both figures matched market forecasts.
The Fed kept its benchmark interest rate unchanged at an annual 3.75%–4.00% at the Federal Open Market Committee (FOMC) meeting the previous day. After raising rates by 0.25 percentage points in September, it opted to pause for one meeting, but with inflation still well above its target, the possibility of further rate hikes remains open.




[email protected] Correspondent Lee Byung-chul Reporter