US economy grows 3.4% in third quarter as inflation picks up

US GDP grew at a 3.4% annualised rate in the third quarter, beating the 3.2% economists expected, as resilient consumer spending and AI-driven investment offset higher oil prices. The Fed's preferred PCE inflation gauge rose 0.5% in September, lifting the annual rate to 3.6% from 3.4%, with core inflation at 3.1%. The data lands days before the midterm elections.