WASHINGTON (MarketWatch) — Year-over-year core inflation rose a record low of 0.9% in October, the Commerce Department reported Wednesday.
Federal Reserve officials have been worried about too-low inflation. For September, the year-over-year rate for these core personal consumption expenditures, which exclude food and energy, gained 1.2%. The data go back to 1960.
The Commerce Department also reported Wednesday that personal income rose 0.5% in October, compared with 0.3% as expected by economists polled by MarketWatch. In September, person income didn’t change.
Spending gained 0.4% in October, matching Wall Street’s expectations. In September, spending gained 0.3%.
Real disposable income rose 0.3% in October. In September, real disposable income fell 0.2%.
The personal consumption expenditure price index rose 0.2% in October, after a gain of 0.1% gain in September. This inflation is up 1.3% in the past year. There was no change in the core PCE index for October, as expected by economists. See economic calendar.
Some analysts are concerned that the Fed’s $600 billion bond-buying plan could lead to higher inflation.
