(The Center Square) – Inflation rose slightly in October, newly released federal data show.
The Bureau of Economic Analysis released the Personal Consumption Expenditure index, a key inflation marker, which showed the index rose 0.3% in October.
“Excluding food and energy, the PCE price index increased 0.2 percent…” BEA said. “Real DPI increased 0.4 percent in October and Real PCE increased 0.5 percent; goods increased 1.1 percent and services increased 0.2 percent…”
Personal income and spending rose as well.
“Personal income increased $155.3 billion (0.7 percent) in October, according to estimates released today by the Bureau of Economic Analysis,” BEA said. “Disposable personal income (DPI) increased $132.9 billion (0.7 percent) and personal consumption expenditures (PCE) increased $147.9 billion (0.8 percent).”
President Joe Biden touted the numbers after their release.
“Today, we learned inflation moderated and incomes grew in October, following news that our economy grew at an even stronger pace from July to September than previously thought,” Biden said. “We’re seeing initial signs that we’re tackling inflation as we transition to steady, stable growth.”
Despite the slower increase, prices are still much higher than when Biden took office.
“From the same month one year ago, the PCE price index for October increased 6.0 percent…” BEA said. “Prices for goods increased 7.2 percent and prices for services increased 5.4 percent. Food prices increased 11.6 percent and energy prices increased 18.4 percent. Excluding food and energy, the PCE price index increased 5.0 percent from one year ago.”
Notably, the data showed the personal saving rate for Americans has plunged.
“Wow: the October personal saving rate was the second lowest ever recorded (data goes back to 1959),” Harvard economist Jason Furman wrote on Twitter after the data was released. “The low and fall saving rate is supporting a huge divergence between stagnant real incomes and steadily rising consumption.”
Price changes also varied by good.
“From the preceding month, the PCE price index for October increased 0.3 percent…” BEA said. “Prices for goods increased 0.3 percent, reflecting an increase in prices for nondurable goods (led by gasoline and other energy goods) that was partly offset by widespread decreases in prices for durable goods. Prices for services increased 0.4 percent (led by food services and accommodations, and housing services). Food prices increased 0.4 percent and energy prices increased 2.5 percent. Excluding food and energy, the PCE price index increased 0.2 percent.”
