US September PCE Inflation Accelerates to 0.5% as Energy Costs Surge

U.S. headline inflation accelerated in September as consumer spending flattened in real terms. The Personal Consumption Expenditures price index rose 0.5% month-over-month, quickening from 0.3% in August, driven by a 9.2% jump in gasoline and motor fuel prices that pushed energy goods and services up 5.4%. Meanwhile, core PCE rose 0.3%, matching August's pace. Spending gains were largely driven by higher outlays on energy and transportation rather than volume growth, though outlays in hospitality, restaurants, and hotels showed resilience.