Inflation rose slightly in September and was close to the Federal Reserve’s target, according to a report released by the Commerce Department on Thursday.
After seasonally adjusting, the personal consumption expenditures price index rose 0.2% this month and the 12-month inflation rate was 2.1%, both in line with Dow Jones forecasts. The Fed uses personal consumption expenditures data as its main indicator of inflation, but policymakers also look at a variety of other indicators.
Fed officials set the inflation target at an annual rate of 2%, a level not reached since February 2021.
While headline data showed the central bank was close to its target, inflation excluding food and energy was at 2.7% after the so-called core measure rose 0.3% on the month. The annual rate was 0.1 percentage points higher than forecast.
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