The Federal Reserve’s preferred measure of inflation reached its highest level since 1991.
According to the Bureau of Economic Analysis, the Personal Consumption Expenditures Price Index — which the central bank uses to inform monetary policy decisions — hit a year-over-year rate of 4.1% in October.
Along with the surge in prices came an increase in the amount consumers spent, which rose 1.3% for the month, higher than the 1% estimate. That came with a 0.5% increase in personal income, which was well ahead of the 0.2% estimate.
Inflation continued to be reflected most in surging energy costs, which rose 30.2% from a year ago, while food prices increased 4.8% during the span. Services inflation gained 6.3%, the same as in September, while goods inflation jumped 7.3%, up from the 6.4% pace in the previous month.