# Fed's Core Inflation at 3.0% in August

> Fed's preferred inflation gauge shows core inflation at 3.0% in August, below expectations.
- Title: Fed's Core Inflation at 3.0% in August · CNBC | Shortify
- Summary: 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…
- Keywords: fed, core inflation, pce index, inflation, consumer prices, economists, business, finance, Fed's, Core, August, CNBC
- Source: CNBC — https://cnbc.com/2026/09/30/feds-preferred-gauge-showed-core-inflation-at-3point0percent-in-august-much-lighter-than-expected.html
- Author: Jeff Cox
- Published: 2026-09-30T12:32:07+00:00
- Read time: 1 min
- Topics: fed, core inflation, pce index, inflation, consumer prices, economists, business, finance
## 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.
## Key takeaway

The Fed's core inflation rate for August fell to 3.0%, below forecasts, but remains above the 2% target.