WASHINGTON – U.S. consumers boosted their spending again in October, while their incomes increased at the fastest clip in six months. A key gauge of inflation watched by the Federal Reserve posted the fastest 12-month gain in two years.
The Commerce Department says consumer spending increased 0.3 percent in October after a revised 0.7 percent jump in September. Incomes increased 0.6 percent, the best showing since April.
An inflation gauge closely followed by the Federal Reserve increased 1.4 percent compared to a year ago. That was the fastest 12-month advance since 2014. The rise was still below the Fed's 2 percent target. But with inflation firming, the Fed is expected to boost a key interest rate next month.