US Core PCE Inflation Eases to 3.0% in August, Below Expectations
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- Core PCE inflation eased to 3.0% YoY in August.
- Headline PCE rose 0.3% MoM in August, July revised down.
- US inflation data suggests easing, economy potentially better balanced.
The U.S. Commerce Department announced on Wednesday that the Personal Consumption Expenditures (PCE) price index, a key inflation measure for the Federal Reserve, indicated a deceleration in core inflation. Excluding volatile food and energy components, the core PCE price index rose by 3.0% year-over-year in August, which was lower than the 3.3% economists had anticipated. The headline PCE index also saw a smaller-than-expected increase, climbing 0.3% month-over-month and 3.4% year-over-year, compared to forecasts of 0.4% and 3.7% respectively. This data suggests a cooling in consumer price pressures, potentially influencing future monetary policy decisions.
The broader U.S. Personal Consumption Expenditures (PCE) price index increased by 0.3 percent in August, slightly less than the 0.4 percent economists had anticipated. This followed a revised 0.1 percent uptick in July, down from the originally reported 0.2 percent. Additionally, revisions to household income and spending data indicate the U.S. economy may be in a better-balanced position than previously thought.