South Korea Inflation Slows to 2.9% in September

Inflation reports showed price growth easing in the United States and South Korea, though both countries continued to face pressures. In South Korea, consumer prices rose 2.9% year over year in September, down from 3.1% in August; higher fuel costs, including sharp increases in gasoline and diesel, were offset in part by falling fruit prices. In the United States, the August personal consumption expenditures price index rose 3.4% from a year earlier, below expectations, while core inflation was about 3%; monthly prices nevertheless increased faster than in July. U.S. consumer spending remained strong and second-quarter growth strengthened, but household savings declined and inflation stayed above the Federal Reserve’s 2% target. The softer-than-expected U.S. reading lifted markets as investors reassessed the likelihood of another near-term interest-rate increase.