Washington | The Federal Reserve’s preferred measure of underlying inflation accelerated in October from a year ago, helping explain policymakers’ more cautious approach to lowering interest rates.

The so-called core personal consumption expenditures price index, which strips out volatile food and energy items, increased 2.8 per cent from October last year and 0.3 per cent from a month earlier, according to Bureau of Economic Analysis data. A good part of that acceleration was due to the impact of higher stock prices on the calculation.

Bloomberg