US inflation heats up in September; consumer spending rises
Economic Times 2 hrs ago·29 Oct 2026, 1:34 pm
The US economy showed signs of resilience in September, with consumer spending increasing despite a rise in inflation. The Personal Consumption Expenditures Price Index, a key measure of price changes, climbed to 0.5% from the previous month. This uptick was largely driven by higher gasoline prices and costs for other consumer goods. However, the Federal Reserve has decided to hold its benchmark interest rate steady for now. This decision comes as the central bank weighs the strength of economic activity against the need to control price growth.
This news is significant for the broader market as it highlights the delicate balance the Federal Reserve is trying to maintain. Investors are closely watching for any signs that inflationary pressures are becoming entrenched, which could force the Fed to act more aggressively in the future. The upcoming economic data will be crucial in determining the Fed's next move, potentially influencing market sentiment and stock valuations in the coming weeks.
Excerpt from Economic Times
In September, the US experienced a notable rise in inflation, driven by surging gasoline prices and other consumer goods. The Personal Consumption Expenditures Price Index climbed to 0.5%, up from 0.3% previously. Despite inflation-adjusted consumer spending remaining flat, it still rose by 0.5%, reflecting a…Read the original at Economic Times
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