Core inflation rose to 5.1% in September, according to gauge watched by Fed
by Zachary Halaschak, Economics Reporter |
October 28, 2022 08:32 AM
Core inflation ticked up in September as measured by the gauge favored by the Federal Reserve, a troubling sign that price pressures are not diminishing despite the central bank's aggressive efforts to tighten monetary policy.
Core inflation, which strips out energy and food prices, rose two-tenths of a percentage point to a 5.1% annual rate, as tracked by the personal consumption expenditures price index, which is more than forecast and higher than August’s 4.9%.
Headline inflation, meanwhile, stayed steady at 6.2%, according to the data released by the Bureau of Economic Analysis Friday morning.
The reading is bad news for the Biden administration, which has been hamstrung by the country’s historic inflation. Republicans are widely expected to seize control of the House and possibly the Senate in large part because households are paying more to afford necessities, and the GOP has used the higher prices as an indictment of Democratic leadership.
"With core inflation accelerating instead of moderating, this suggests that solid price growth has continued unabated (at least for now)," tweeted Chad Moutray, the chief economist for the National Association of Manufacturers.
The personal consumption expenditures index updated Friday is different from the consumer price index, which showed 8.2% inflation and 6.6% core inflation for September.
more
https://www.washingtonexaminer.com/policy/economy/core-inflation-rose-to-5-1-in-september-according-to-gauge-watched-by-fed
