WASHINGTON – U.S. incomes and spending rose in October, providing the means for consumers to keep spending as the holiday shopping season approached, while core consumer prices rose modestly, the government reported on Thursday.
Incomes rose 0.4 percent in October after a 0.5 percent rise in September while spending grew at a 0.2 percent rate after declining 0.2 percent in September. That was roughly in line with Wall Street economists' forecasts for a 0.5 percent rise in incomes and a 0.1 percent spending increase.
Core consumer prices, which exclude food and energy, rose 0.2 percent in October, matching September's rise. On a year-over-year basis, core prices were up 2.4 percent, the same increase as in September.
Overall consumer prices rose 1.5 percent on a year-over-year basis, the smallest rise since a 1.4 percent gain in August 2002.