US Fed’s preferred inflation gauge sees sharpest rise in 30 years
Al Jazeera
Fears are mounting that the current wave of US price pressures could last longer than expected after a closely watched inflation gauge hit its highest annual rate since 1991.
A closely watched measure of U.S. inflation rose the most on an annual basis in three decades, fueling concerns that price increases will last longer than expected and eventually hit consumer spending.
The personal consumption expenditures price gauge, which the Federal Reserve uses for its inflation target, rose 0.4% from a month earlier and 4.3% from a year earlier. The annual increase was the largest since 1991.
U.S. personal spending growth increased 0.8% from a month earlier, following a downwardly revised 0.1% decline in July, Commerce Department figures showed Friday. Spending in July was previously reported as a 0.3% gain.