USA: PCE inflation in line with expectations in October

(CercleFinance.com) - U.
S. consumer spending slowed in October, while inflation stabilized, according to statistics released Thursday by the Commerce Department.

According to these data, the PCE consumer price index rose by 0.2% last month, as in September, in line with economists' expectations.

On an annualized basis, it rose by 2.3%, after having risen by 2.1% in September.

Excluding food and energy, two volatile components of the statistics, the 'core' PCE index rose by 0.3% in October, as in September, a figure again in line with expectations.

On a year-on-year basis, the core PCE index rose by 2.8%, compared with +2.7% the previous month, taking it further away from the Fed's 2% target.

Figures published this Wednesday also show that household consumption expenditure rose by 0.4% in October, compared with +0.6% in September, while economists were expecting +0.5%.

Household income rose by 0.6% in October, compared with +0.3% in September and +0.3% expected by the market.

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