The Federal Reserve's preferred inflation metric rose 4.1% in October, the biggest jump since January 1991.
Core inflation rose 0.6% last month, the largest gain since January 1991, as the disinflationary impact of the coronavirus continued to wear off.
The rise in the core personal consumption expenditures index last month is not expected to change the Fed's policy of gradual rate increases.
“Without sustained improvement in wages, consumers will struggle to maintain even today’s moderate pace of consumption," one economist says.
Regardless of timing, higher U.S. policy interest rates could result in "a significant and abrupt rebalancing of international portfolios."
