Inflation edged up in September, nearing the Federal Reserve’s 2% target, with the personal consumption expenditures (PCE) index showing a 0.2% monthly increase and a 2.1% annual rate.

Core inflation, excluding food and energy, rose 2.7% year-over-year. Service prices increased by 0.3%, while goods saw a 0.1% drop.

Despite inflation concerns, income rose 0.3%, consumer spending increased 0.5%, and the personal savings rate dropped to 4.6%, the lowest this year.

Unemployment claims also decreased, signaling job stability, CNBC has reported.

Markets anticipate a Fed rate cut at next week’s meeting, following a similar move in September.

Written by B.C. Begley