(fxcue news) - A closely watched report released by the Commerce Department on Wednesday showed consumer prices in the U.S. increased in line with expectations in the month of October. The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in October, matching the uptick seen in September as well as economist estimates. The monthly increase by the PCE price index came as prices for services climbed by 0.4 percent, more than offsetting a 0.1 percent dip by prices for goods. The report said food prices crept up by less than 0.1 percent during the month, while energy prices edged down by 0.1 percent. The annual rate of growth by the PCE price index accelerated to 2.3 percent in October from 2.1 percent in September, which was also in line with expectations. While prices for goods slumped by 1.0 percent compared to the same month a year ago, prices for services surged by 3.9 percent. Excluding food and energy prices, the core PCE price index climbed by 0.3 percent in October, matching the increase seen in September as well as economist estimates. The annual rate of growth by the core PCE price index crept up to 2.8 percent in October from 2.7 percent in September, which was also in line with expectations. The inflation readings, which are preferred by the Federal Reserve, were included in a report on personal income and spending. The report said personal income climbed by 0.6 percent in October after rising by 0.3 percent in September. Economists had expected personal income to increase by another 0.3 percent. Disposable personal income, or personal income less personal current taxes, grew by 0.7 percent in October after climbing by 0.3 percent in September. The Commerce Department also said personal spending increased by 0.4 percent in October after advancing by 0.6 percent in September. Economists had expected personal spending to rise by 0.3 percent compared to the 0.5 percent increase originally reported for the previous month. However, excluding price changes, personal spending inched up by just 0.1 percent in October after climbing by 0.5 percent in September. With income increasing by more than spending, personal saving as a percentage of disposable personal income rose to 4.4 percent in October from 4.1 percent in September.