Fed’s favorite gauge shows inflation rose 0.2% in October and 3.5% from a year ago, as expected

Inflation as measured by personal spending increased in line with expectations in October, possibly giving the Federal Reserve more incentive to hold rates steady and perhaps start cutting in 2024, according to a data release Thursday.

The personal consumption expenditures price index, excluding food and energy prices, rose 0.2% for the month and 3.5% on a year-over-year basis, the Commerce Department reported. Both numbers aligned with the Dow Jones consensus.

Personal income and spending both rose 0.2% on the month, also meeting estimates.

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