U.S. consumer spending posts tiny rise in September

U.S. consumer prices edged up slightly in September, with the overall increase held back by a third straight monthly decline in gasoline prices. The tiny gain was the latest evidence that inflation remains dormant.

Read: BoC sets rate, warns of renewed vigour in household spending

The Labor Department says consumer prices rose 0.1% in September after having falling 0.2% in August. Core prices, which exclude volatile food and energy, also rose 0.1% after no gain in August.

Over the past 12 months, overall prices are up 1.7% and core prices are up a similar 1.7%. Both increases are well below the 2% target for inflation set by the Federal Reserve. The absence of inflationary pressures has allowed the central bank to keep interest rates at record lows to boost the economy.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.