Inflation as measured by Personal Consumption Expenditures likely reaccelerated in October, according to forecasts of the report due Wednesday.
by Diccon Hyatt
Investopedia
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The Federal Reserve’s preferred measure of inflation likely stayed too hot for comfort in October, though possibly not hot enough to derail the central bank’s expected move to cut interest rates again in December, according to forecasts.
Forecasters expect a Bureau of Economic Analysis report Wednesday to show the cost of living as measured by Personal Consumption Expenditures rose 2.3% in October over 12 months, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. That would be up from a 2.1% annual increase in September.
If forecasts prove accurate, the uptick would mirror a separate inflation measure, the Consumer Price Index, which also showed inflation rising in October on a year-over-year basis.