The price rally in the US continued in October, with inflation showing the largest annual increase in the last 31 years, as shown by government data that saw the light of day today.
In particular, the cost of goods and services increased by 0.6% in October based on the index for personal consumption expenditures, according to data from the US Department of Commerce. Analysts in a Wall Street Journal poll expected the index to rise 0.4%.
The latest rise has pushed the inflation rally over the past year to 5% from 4.4% in September. This is the highest level since December 1990.
The Federal Reserve considers the Consumer Price Index to be a more reliable measure of US inflation than the most well-known consumer price index. The latest measurement of the consumer price index showed that the cost of living increased to 6.2% which is also a high of 31 years.
The structural index, which does not include energy and food costs, rose 0.4% in October. The 12-month rise in the index strengthened to 4.1% from 3.7% last month, which is also the highest level since December 1990.
Government figures also showed that consumer spending jumped 1.3% last month, following a 0.6% rise in September. Analysts’ estimates in a Reuters poll were for a smaller increase in spending by 1.0%.
Finally, personal income increased by 0.5%, as shown by government data.
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Source From: Capital
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