Inflation rose in September, driven by higher gasoline prices
The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's (Fed) preferred measure of inflation, rose 3.6% year-over-year in September, up from the previous month's figure.
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Inflation in the country accelerated in September to 3.6% year-over-year, according to data released Thursday by the Department of Commerce. The rise in prices poses a challenge for the Federal Reserve, which is keeping interest rates unchanged amid the midterm elections.
The Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve's (Fed) preferred measure of inflation—posted a year-over-year increase of 3.6% in September.
Consumer prices rose by 0.5% in September compared with August, when the monthly increase had been 0.3%. The year-over-year indicator also reflects persistent inflationary pressures in the U.S. economy.
Excluding food and energy, whose prices tend to fluctuate more, core inflation stood at 3.1% year-over-year. On a monthly basis, this indicator rose 0.3% compared with August.
The economy is growing faster than expected
The data also showed that the real gross domestic product (GDP) grew by 3.4% in the third quarter of 2026, exceeding Wall Street's forecast of 3.1%. This result marks an acceleration from the 2.2% growth recorded in the second quarter, according to the preliminary estimate released by the BEA.
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