US PCE inflation reaches 3.6% over the year to September

The US personal consumption expenditures price index rose 3.6% in September from a year earlier, according to estimates released by the Bureau of Economic Analysis on October 29. Prices increased 0.5% from August.

Excluding food and energy, the index rose 3.1% year over year and 0.3% from the previous month. The PCE index tracks prices for goods and services purchased by consumers; the annual and monthly figures measure different periods and should not be added together.

Spending and income

Consumer spending rose $113.1 billion, or 0.5%, in current dollars during September. After adjusting for prices, spending increased less than 0.1%, the bureau said. Personal income rose 0.2%, while disposable income also increased 0.2% in current dollars.

The personal saving rate was 3.8% of disposable income. These figures are estimates and may be revised as further data become available; the next release covering October is scheduled for November 25.