US Consumer Spending Beats Estimates With Core Inflation Steady
Core inflation remained steady at 2.9% in August 2025, with consumer spending rising 0.4% as the Federal Reserve weighs tariff effects on future rate cuts.
- The Personal Consumption Expenditures inflation increased by 2.7% in August compared to July's 2.6%, according to the Bureau of Economic Analysis.
- Core inflation remained steady at 2.9% in August, consistent with July figures, as reported by the Bureau of Economic Analysis.
- Consumer spending rose by 0.6% in August, surpassing July's 0.5% pace, indicating strong consumer activity despite economic pressures.
- Real GDP expanded at a 3.8% annual rate in the second quarter, exceeding expectations, according to the Commerce Department.
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U.S. Markets Today: Inflation On Script, Spending Firm, Confidence Softer Into Quarter-End
Friday, September 26, 2025 (ET) delivered a familiar soft-landing mix for the U.S. economy. The Fed’s preferred gauge, core PCE, rose 0.2% month over month in August and 2.9% year over year, matching expectations. Headline PCE increased 0.3% on the month and 2.7% on the year. Under the hood, personal income advanced 0.4% while personal […]


Consumer spending strong as Fed’s preferred inflation gauge rises 2.7% in August
The Federal Reserve’s preferred inflation gauge remained stubbornly high in August – but not enough to dash hopes for an interest rate cut at next month’s meeting.

Fed's favored inflation gauge accelerates slightly in August
The Federal Reserve’s favored inflation gauge accelerated slightly in August from a year earlier. The Commerce Department reported Friday that its personal consumption expenditures (PCE) price index was up 2.7% in August from a year earlier, up from a 2.6% year-over-year increase in July and most si
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