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.
33 Articles
33 Articles
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 American inflation measured by the Pce index, the personal consumption expenditure that the US Fed as one of the main indicators of price pressures, dropped in August to 3.4% from 3.7% in July. The figure is under the expectations of analysts. (ANSA)
U.S. inflation rises again and keeps the pressure on Fed
The main inflation gauge used by the Federal Reserve to set U.S. interest rates rose sharply in August, underscoring why the central bank raised interest rates earlier this month for the first time in three years.
US inflation remained stubborn last month as Iran war continued to lift prices
By Alicia Wallace, CNN (CNN) — The Federal Reserve’s preferred inflation gauge remained elevated in August, underscoring the persistence of above-normal price increases, new data showed Wednesday.The Personal Consumption Expenditures price index rose 0.3% from July, bringing the annual rate to 3.4%, unchanged from the month before, according to new data from the Commerce Department.Inflation
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