September inflation rises to 3.6% as U.S. growth stays strong

U.S. inflation accelerated in September, with the Federal Reserve’s preferred price gauge rising 3.6% from a year earlier, while the economy expanded at a 3.4% annualized rate in the third quarter, Commerce Department data showed. The figures present policymakers with persistent price increases alongside strong growth, but do not determine the Fed’s next move. The Personal Consumption Expenditures price index increased 0.5% from August, matching the monthly rise reported for that month. Its annual rate was up from 3.4% in August and remained above the Federal Reserve’s 2% target. Higher gasoline prices contributed to the September increase, according to reports on the data. Core PCE inflation, which excludes food and energy, rose 0.3% in September and 3.1% over 12 months, compared with 3.0% in August. The Federal Reserve monitors both measures, while officials generally regard core inflation as a useful gauge of underlying price pressures. The Fed held its benchmark interest rate at 3.75% to 4.00% at its October meeting. Policymakers have said they are assessing incoming economic information before deciding on their next step. Financial markets were pricing in an 84.6%...