Inflation increased slightly in September and moved closer to the Federal Reserve’s target, according to a Commerce Department report Thursday.
The personal consumption expenditures price index showed a seasonally adjusted 0.2% increase for the month, with the 12-month inflation rate at 2.1%, both in line with Dow Jones estimates. The Fed uses the PCE reading as its primary inflation gauge, though policymakers also follow a variety of other indicators.
Fed officials target inflation at a 2% annual rate, a level it has not achieved since February 2021.
Though the headline number showed the central bank nearing its goal, the inflation rate was at 2.7% excluding food and energy, after the so-called core measure increased 0.3% on a monthly basis. The annual rate was 0.1 percentage point higher than forecast.
This is breaking news. Please check back for updates.