The US Commerce Department reported that personal consumption expenditures and the PCE price index rose 6.2% year-over-year in September and 0.3% month-over-month, respectively.
The rate of increase from the same month of the previous year is the same as in August, and the rate of increase from the previous month is in line with experts’ forecasts, so it is analyzed that the inflation rate has not stopped .
Despite inflation, US consumer spending rose 0.6% in September from the previous month, beating the consensus of 0.4%.
Consumers continue to open their wallets despite price increases because wages have risen accordingly.
The US Department of Labor’s third quarter employment cost index (ECI), released on the same day, rose 1.2%, keeping it close to 1.3% in the second quarter.
Therefore, it is likely that the Fed will raise interest rates by 0.75 percentage points in the fourth huge step in a row at the regular meeting of the Federal Open Market Committee which will be held next week in November.
There are also comments that the rate of increase will be adjusted from December onwards due to the side effects of rapid rate increases and concerns about economic decline.
YTN Lee Sang-soon (sslee@ytn.co.kr)
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