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Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected
- The Commerce Department reported Core PCE rose 0.2% monthly in August, reaching 3% year over year, cooler than economists' expectations of 3.3%.
- Headline PCE increased 0.3% monthly and 3.4% from a year ago, both figures below LSEG economists' predictions of 0.4% and 3.7% respectively.
- The BEA revised second-quarter Real GDP growth up to 2.2% from 1.5%, reflecting stronger consumer spending and private investment contributions.
- Policymakers monitor Core PCE closely because it filters out volatile price swings and signals long-term inflation trends, according to CNBC.
- The next GDP release, an advance estimate for third-quarter 2026, is scheduled for October 29, when investors will assess the economic trajectory.
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86 Articles
86 Articles
Key inflation reading comes in cooler than expected, easing pressure on Fed and Trump
The government said Wednesday that a key index of what Americans pay for goods and services came in lower than expected for August, easing pressure on the Federal Reserve to raise interest rates.
·Washington, United States
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The inflation indicator preferred by the Federal Reserve remained high in August, reflecting the persistence of higher than usual price increases, as shown by new data on Wednesday.
Prices rose 3.4% year-on-year in August in the United States, according to the PCE index published on Wednesday, more moderate than expected, but only due to statistical revisions.
·Montreal, Canada
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Coverage Details
Total News Sources86
Leaning Left10Leaning Right10Center28Last UpdatedBias Distribution58% Center
Bias Distribution
- 58% of the sources are Center
58% Center
L 21%
C 58%
R 21%
Factuality
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