A shopper at a grocery store in Miami, Florida. Photographer: Joe Raedle/Getty Images.

The Federal Reserve’s preferred measure of underlying inflation accelerated in October from a year ago, helping explain policymakers’ more cautious approach to lowering interest rates.

The so-called core personal consumption expenditures (PCE) price index, which strips out volatile food and energy items, increased 2.8 percent from October of 2023 to last month, and it rose 0.3 percent from September to October of this year, according to Bureau of Economic Analysis (BEA) data out last Wednesday. A good part of that acceleration was due to the impact of higher stock prices on the calculation.

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