U.S. consumer prices rose 3.6 percent over the year to September, while core PCE inflation was 3.1 percent, the BEA reported. Monthly prices rose 0.5 percent, outpacing the 0.2 percent gain in disposable income. After inflation, disposable income fell 0.3 percent and spending rose less than 0.1 percent. The release shows a squeeze on purchasing power despite higher cash spending. The next report is due November 25.
Related currencies / asset groups: USD
AI interpretation: September’s price increases outpaced disposable income growth, squeezing purchasing power.
The BEA reports September PCE inflation of 3.6 percent year on year and 0.5 percent month on month; excluding food and energy, prices rose 3.1 percent and 0.3 percent, respectively.
Bureau of Economic AnalysisSeptember real disposable personal income fell 0.3 percent, while real PCE increased less than 0.1 percent.
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