U.S. consumer spending rose moderately in October, while the annual increase in inflation was the smallest since April 2021. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.2% last month after an unrevised 0.7% gain in September, according to the Commerce Department. Spending on international travel, hospital and nursing home services, accommodations and gasoline helped to drive the month’s increase, although consumers pulled back on durable goods purchases. Personal income increased by 0.2%. Commerce also said that inflation, as measured by the personal consumption expenditures (PCE) price index – the Federal Reserve’s favored inflation gauge – was unchanged in October after rising 0.4% in September. In the 12 months through October, the PCE price index increased 3.0%. That was the smallest year-on-year gain since March 2021 and followed a 3.4% advance in September. Excluding the volatile food and energy components, the PCE price index gained 0.2% last month, after rising 0.3% in September. Monthly inflation readings of 0.2% on a sustainable basis are needed to bring inflation back to the U.S. central bank’s 2% target, according to economists. The so-called core PCE price index advanced 3.5% on a year-on-year basis in October, the smallest rise since April 2021, after increasing 3.7% in September.