"Surprising Surge: Fed's Preferred PCE Price Tracker Reveals Unexpected Inflation Spike"

Inflation, as measured by the PCE price index, rose higher than expected in September, increasing the pressure on the Federal Reserve to consider raising interest rates. The index has risen 3.4% over the past year, surpassing the Fed's 2% target. However, the core rate of inflation, which excludes volatile food and energy costs, increased at a slower pace. While the worst bout of inflation in 40 years is slowly receding, it may take a few more years for prices to return to pre-pandemic levels. The Fed expects to reach its 2% inflation target by 2026. The increase in inflation is unlikely to prompt the Fed to raise rates at its upcoming meeting, and Wall Street expects rates to remain unchanged.