The Federal Reserve’s favored inflation gauge, the Personal Consumption Expenditures (PCE) price index, decelerated to an annual rate of 3.4% in August. This figure arrived significantly lower than the 3.7% level anticipated by economists.
Core PCE, which excludes volatile food and energy costs, cooled to 3.0% for the month, outperforming the projected 3.3% forecast. Additionally, government data showed downward revisions for July’s figures, with both headline and core PCE inflation adjusted lower by 30 basis points each.