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Bidenflation is on the rise again as prices rise at the fastest rate in 31 years

The Federal Reserve’s inflation barometer soared in October to the fastest annual rate of price increase in 31 years, Commerce Department data showed Wednesday.

The personal consumption expenditure price index rose 5% from October 2020, an acceleration from the 4.4% annual gain recorded in September. Compared to the previous month, prices rose 0.6%, the largest monthly increase since 2008.

Core PCE inflation, which excludes the volatile food and fuel categories, rose 4.1% per year, also the fastest pace since November 1990. For the month, it increased by 0. 4%. That’s below the levels reached in April, May and June of this year, which were the highest since 2001.

The personal consumption expenditure price index is the Commerce Department’s measure for tracking the price changes for goods and services purchased by consumers throughout the economy. It looks like the Ministry of Labor’s Consumer Price Index, but tracks a broader set of goods and services and adjusts for consumers to switch from one product to another as they go. prices change. The Federal Reserve is monitoring it closely and measuring its target of an average inflation of 2% over time against PCE inflation.

The most recent CPI showed prices were up 6.2% year-on-year, also a 31-year high.

Wednesday’s PCE inflation signals that inflation is not easing but continues to accelerate, defying predictions by Fed officials and the Biden administration that high prices are transient.

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