US core PCE inflation rises, exceeding forecast

The U.S. core Personal Consumption Expenditures (PCE) price index rose 2.5% year-over-year in September, surpassing the 2.4% forecast but falling short of the previous 3.3% reading. This measure, preferred by the Federal Reserve as an indicator of underlying inflation, remains above the central bank’s 2% target. The data suggests persistent inflationary pressures, which may influence the Federal Reserve’s monetary policy stance. Observers note that this development could lead to a more cautious approach from the Fed, potentially impacting financial markets, including the cryptocurrency sector.