Inflation Alert! The Bureau of Economic Analysis today announced the PCE price index without food and energy was up by 3.6% in September--compared to a year ago. This is the highest PCE inflation reading since 1991.
The red line (sorry not a straight line) is the Fed's 2% target for inflation. As we can see, we have blown past that! Again, we haven't seen readings this high since 1991!
Remember, this number is manipulated by excluding food and energy. By doing so,