Tame Inflation Keeps Fed on Track

Personal-consumption expenditures price index shows little sign that inflation threatens to overshoot the Fed’s 2% target

Paul Kiernan and

Sarah Chaney

Updated Oct. 29, 2018 7:20 p.m. ET

WASHINGTON—A closely watched price index suggested Monday that, for now, inflation poses little threat to the economy.

The personal-consumption expenditures price index rose 0.1% in September from August, the Commerce Department said Monday. That marked the fourth straight month in which the Federal Reserve’s preferred inflation gauge fell short of the 0.165% monthly pace needed to meet its 2% annual target.

For...