The preferred inflation indicator of the Federal Reserve simply took a negative turn. It occurs as Donald Trump, the president-elect, vows to impose steep tariffs that may raise living expenses even further.
According to Commerce Department data issued Wednesday, the Personal Consumption Expenditures price index increased 2.3% in October compared to the previous year, which was faster than the 2.1% pace recorded in September.
Prices increased by 0.2% on a monthly basis, which was the same as the September gain.
The majority of the monthly increase was driven by inflation in the services sector, where prices increased by 0.4% from September while prices for products increased by 0.1%. Two of the largest consumer touchpoints, the cost of food and gas, remained mostly unchanged.
