The main inflation indicator for the US Federal Reserve hit its highest level in 30 years in September: Commerce Dept.
Washington [US], Oct. 29 (ANI / Sputnik): The US Federal Reserve’s annual inflation indicator hit a 30-year high in September, Commerce Department data showed on Friday, keeping pressure on bank policymakers central government as well as the reigning Biden administration. in soaring costs. The personal consumption expenditure price index rose 4.4% from September 2020. This was the highest one-month annual growth in PCE’s core reading since 1991.
The core PCE index, which excludes volatile food and energy prices, was unchanged at 3.6% year-on-year in September. The Fed tends to pay more attention to the core PCE index when making monetary policy decisions, although growth there has also been the highest in 30 years. The Commerce Department said consumer spending, which accounted for 70% of all U.S. economic activity, also rose 0.6% in September.
The U.S. economy shrank 3.5% for all of 2020 due to closures and other disruptions caused by the coronavirus pandemic. This year, growth has been uneven, with annualized expansion of 3.5% in the first quarter, 3.6% in the second and 2.0% in the third. The Fed is planning a 6.5% expansion for the whole year, although some central bank officials have more ambitious expectations, forecasting growth of up to 7.0%.
The problem for the Fed, however, is inflation, as wages and prices of almost everything from coffee to oil and building materials have climbed from pandemic lows. (ANI / Sputnik)
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)