US September inflation accelerates, expectations for a Fed rate hike in December gain momentum.

October 29 - U.S. consumer prices accelerated in September, which may further support the Federal Reserve in raising interest rates again in December after pausing rate hikes this week. A report released by the U.S. Bureau of Economic Analysis on Thursday showed that measured by the personal consumption expenditures (PCE) price index, prices rose 0.5% month-over-month in September and 3.6% year-over-year. The acceleration in price increases further indicates that inflation is above the level desired by Federal Reserve officials. The Federal Reserve measures inflation using the PCE price index, with a long-term goal of keeping annual increases around 2%. Core prices, excluding volatile categories such as food and energy, rose 3.1% year-over-year in September and 0.3% month-over-month. Core prices also rose 0.3% month-over-month in August. A day earlier, Federal Reserve officials voted 10-2 to keep interest rates unchanged, with two officials voting against holding rates steady and advocating for a rate hike. Investors expect that Federal Reserve officials may raise interest rates again at the final meeting of the year in December and may raise rates multiple times next year.