Consumer spending stalled in September as inflation remained stubborn

(CNN) — The last piece of official inflation data to land before the Federal Reserve’s policymaking meeting next week was a shutdown-delayed report that showed the pace of price hikes remained stubborn in September and consumer spending waned from the month before.

The Personal Consumption Expenditures price index — the inflation gauge the Federal Reserve uses for its 2% target rate — rose 0.3% on a monthly basis, which lifted annual inflation to 2.8%, a rate last hit in April 2024, according to data released Friday by the Commerce Department.

Gas prices were on the high side in September, and those helped to drive overall inflation higher. Food prices also rose for the second month in a row.

However, energy and food prices can be quite volatile (and influenced by one-time factors), so