US Fed's preferred inflation indicator rises 4.7% in Q3

By Ovunc Kutlu

ISTANBUL (AA) - The core personal consumption expenditures (PCE) price index increased 4.7% annually in the third quarter, the final reading of the Commerce Department said Thursday.

The US Federal Reserve's preferred and most reliable inflation indicator was higher than expectations of 4.6%.

It is an upward revision of 0.1 percentage point from the second estimate of the Commerce Department which was 4.6%. The first estimate was 4.5%.

The PCE price index, which includes food and energy prices, rose 4.3% annually in the third quarter -- in line with estimates.

The index was unchanged from the second estimate, while the first stood at 4.2%.

The index is closely watched by the Fed, which raised interest rates by 50 basis points last week, after hiking rates by 75 basis points four consecutive times to tame inflation.