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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Ottumwa Courier
SooLeader.comStocks and bonds are holding relatively steady after a potentially encouraging update on inflation
Some of the pressure that’s ballooned in the bond market is easing after a report said inflation across the United States wasn’t as bad last month as economists expected. The better-than-expected data helped Treasury yields pull back a bit Wednesday,…
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.
The U.S. Consumer Expenditure Price Index (CPE), the preferred Federal Reserve (Fed, U.S. central bank) measure for inflation, rose 0.3% in August, accelerating against the high revised July 0.1%, according to the U.S. Department of Commerce. The result came in line with the market forecast. Exclusive material for subscribers. To have full access, access the link of the subject and register.
The PCE price index for August, released by the U.S. Department of Commerce, rose 3.4% year-over-year, falling short of market expectations. Although core inflation, excluding food and energy, also fell short of forecasts, market vigilance regarding inflationary pressures remains high as personal consumption expenditures increased by 0.9%, outpacing income growth.
US inflation rises less than expected in August; consumer spending surges
WASHINGTON, Sept 30 (Reuters) – U.S. inflation increased less than expected in August, which could see financial markets further reduce the odds of another interest rate increase from the Federal Reserve next month. The Personal Consumption Expenditures Price Index rose 0.3% last month after a downwardly revised 0.1% gain in July, the Commerce Department’s Bureau of Economic Analysis said on Wednesday. Economists polled by Reuters had forecast…
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