According to the Commerce Department gauge, which is closely monitored by Federal Reserve policymakers, inflation rose sharply in October.

Prices for personal consumption, which includes food and energy excepted, rose 4.1% year-over-year. However the core reading has not changed since January 1991. Because it does not include the volatility these two categories could show, the Fed favors this measure.

This reading was in line with the Dow Jones estimation.

The PCE index, which includes food and energy, rose by 5%, its fastest increase since November 1990.

With the price increase, there was also an increase of consumers spending. It rose 1.3% in the month, above the 1% estimation. The 0.5% personal income increase was also well above the 0.2% estimation.

Surging energy costs rose by 30% compared with a year ago. Food prices increased 4.8% in the same period. Inflation in services rose 6.3% in September. However, goods inflation increased 7.3% from the 6.4% rate in the prior month.