Fed Inflation Gauge Meets Expectations, Spending Surpasses Estimates

Inflation in the US accelerated in September, with the core personal consumption expenditures price index rising 0.3%, in line with expectations. However, consumer spending exceeded forecasts, increasing by 0.7%. Personal income also rose by 0.3%, slightly below estimates. The Federal Reserve focuses on core inflation, which has been on a downward trend but remains above the central bank's 2% target. The report is unlikely to change the Fed's view that inflation will slow in the coming months as demand moderates. Traders are pricing in a near-100% chance that the Fed will not announce a rate hike at its upcoming policy meeting.