US Feds favored inflation gauge ticks up in October [Video]

US inflation — set to be a key issue for incoming president Donald Trump — accelerated slightly last month, according to data published Wednesday, underscoring price pressures in the world’s largest economy.

The personal consumption expenditures (PCE) price index rose 2.3 percent in the 12 months to October, up from 2.1 percent in September, the Commerce Department announced.

This was in line with the median forecast from economists surveyed by Dow Jones Newswires and The Wall Street Journal.

Despite the small uptick last month, headline PCE inflation remains close to the Fed’s long-term target of two percent, keeping the bank’s inflation fight largely on track.

The Fed — the independent US central bank — is responsible for tackling inflation and unemployment, largely by hiking or lowering interest rates to affect demand.

This indirectly impacts the cost of borrowing for consumers and businesses, affecting everything from mortgages to car loans.

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