Key Fed inflation gauge rose 0.3% as expected in September; spending tops estimate

Inflation accelerated in September but consumer spending was even stronger than expected, according to a Commerce Department report Friday.

The core personal consumption expenditures price index, which the Federal Reserve uses as a key measure of inflation, increased 0.3% for the month, in line with the Dow Jones estimate and above the 0.1% level for August.

Even with the pickup in prices, personal spending kept up and then some, rising 0.7%, which was better than the 0.5% forecast. Personal income rose 0.3%, one-tenth of a percentage point below the estimate.

This is breaking news. Please check back here for updates.