U.S. PCE Inflation Accelerates to 3.6%, Above the Fed’s 2% Goal

U.S. inflation accelerated in September, with the personal consumption expenditures price index rising 3.6% from a year earlier, adding a fresh policy data point for markets that include Bitcoin (BTC).

The Bureau of Economic Analysis released its September Personal Income and Outlays report at 8:30 a.m. ET (12:30 UTC) on Oct. 29. The headline PCE index increased 0.5% from August, when it rose 0.3%. Its year-over-year pace also quickened, from 3.4% in August to 3.6% in September. The monthly headline gain matched economists’ expectations.

Core PCE, which excludes food and energy, rose 0.3% month over month and 3.1% year over year. Price growth on both comparisons was lower for core PCE than for the headline index, while both measures remained above the Fed’s 2% inflation goal.

The Federal Reserve held its benchmark interest rate at 3.75% to 4% on Oct. 28 and described inflation as elevated. September’s headline rate was 1.6 percentage points above the Fed’s goal, adding another reading to the policy backdrop for Bitcoin markets.