U.S. consumer spending rose more than expected in September while underlying inflation pressures continued to bubble, keeping the Federal Reserve on track to hike interest rates by another three-quarters of a percentage point next week, Reuters reported. But there was some encouraging news in the fight against stubbornly high inflation, with other data from the Labor Department on Friday showing private industry wage growth slowed considerably in the third quarter. The moderation occurred in inflation-sensitive industries like retail, construction and finance. Sectors such as healthcare and education, which are still experiencing worker shortages, saw a pick-up. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.6% last month, the Commerce Department said. Data for August was revised higher to show spending increasing 0.6% instead of 0.4% as previously reported. The Commerce Department report showed the personal consumption expenditures (PCE) price index rose 0.3%, matching August's gain. In the 12 months through September, the PCE price index increased 6.2%, after rising by the same margin in August. Excluding the volatile food and energy components, the PCE price index climbed 0.5%, matching the increase in August. The so-called core PCE price index advanced 5.1% on a year-on-year basis in September after increasing 4.9% in the 12 months through August. The Fed tracks the PCE price indexes for its 2% inflation target. Other inflation measures are running much higher. The consumer price index increased 8.2% on a year-on-year basis in September. But there are some glimmers of hope. In a separate report on Friday, the Labor Department said the Employment Cost Index, the broadest measure of labor costs, rose 1.2% last quarter after increasing 1.3% in the April-June period.
