US Core Inflation Rose 3.0 Percent in August as PCE Index Cools More Than Expected
· Business · CNBC, Bloomberg, Reuters
The personal consumption expenditures price index increased a seasonally adjusted 0.3 percent in August, pushing the 12-month headline gain to 3.4 percent, according to the Commerce Department. Core PCE, which excludes food and energy, rose 0.2 percent for the month to bring the annual rate to 3.0 percent. Economists surveyed by Dow Jones had projected higher annual increases of 3.7 percent for headline PCE and 3.3 percent for core inflation. Federal Reserve officials closely monitor the core index to assess longer-term economic trends. The latest data release follows recent computational adjustments made by the Bureau of Economic Analysis.
Why it matters
Cooler-than-expected US inflation figures provide crucial data for Federal Reserve monetary policy deliberations and interest rate trajectories.
Read the original report — CNBC
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