Fed's Core Inflation at 3.0% in August
Fed's preferred inflation gauge shows core inflation at 3.0% in August, below expectations.
In brief
Fed's preferred inflation gauge shows core inflation at 3.0% in August, below expectations. The Fed's core inflation rate for August fell to 3.0%, below forecasts, but remains above the 2% target. Originally reported by CNBC.
August PCE Index
The August personal consumption expenditures price index rose 0.3% seasonally adjusted, putting the 12-month gain at 3.4%.
Core Inflation Rate
Excluding food and energy, PCE posted a 0.2% climb, putting the annual core level at 3.0%.
Economists' Forecasts
Economists surveyed by Dow Jones expected core inflation to rise 3.3%, but it fell to 3.0%.
Market Reaction
Stock market futures gained as traders priced in less of a chance for a Fed rate hike in October.
Income and Spending
Personal income rose 0.2% while spending increased 0.9%, both below consensus estimates.
GDP Revision
Second-quarter GDP was revised up to 2.2% annualized rate from 1.5% due to higher consumer and government spending.
In short
The Fed's core inflation rate for August fell to 3.0%, below forecasts, but remains above the 2% target.
