Core prices in the Personal Consumption Expenditures (PCE) Price Index climbed for the second month in a row in September, mirroring the Consumer Price Index (CPI) in showing rising core prices amid stubbornly high overall inflation.
Core prices, which discount the more volatile prices of food and energy and is the Federal Reserve’s preferred inflation measure, were up 5.1% annually in September from 4.9% in August, and grew 0.5% on a monthly basis for the second month in a row, according to the Bureau of Economic Analysis (BEA). Overall, inflation held steady at 6.2% annually, matching August, but increased 0.3% on a monthly basis. (RELATED: Inflation Stays Sky-High As Core Prices Soar Above Expectations)
Core prices as measured by the CPI rose by 6.6% annually in September and 0.6% on a monthly basis, the Bureau of Labor Statistics (BLS) reported. One key difference between the two measures is that the CPI focuses on the out-of-pocket costs faced by urban consumers, while the PCE measures the prices faced by all households and nonprofit institutions that serve households, according to the BLS.
#NEW PCE Inflation still running hot in September@BEA_News PCE price index +0.3% monthly, +6.2% annually – unchanged from August
Core PCE price index +0.5% monthly, +5.1% annually – up from 4.9% in August
— Greta Wall (@GretaLWall) October 28, 2022
On a monthly basis, food prices increased by 0.6% while energy prices declined 2.4%, the BEA reported. On an annual basis, food prices are up 11.9% while energy prices were up 20.3%.
Real disposable personal income (DPI), which measures the combined personal income of Americans after tax, was essentially flat on a monthly basis in September, the BEA reported. Real monthly DPI growth declined for the second month in a row, falling from 0.5% in July to 0.2% in august before plateauing in September.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.