Inflation measure closely watched by the Fed fell to 2.2% in August
Published On Sep 27, 2024, 8:33 AM
In August, the closely monitored inflation measure known as the PCE (Personal Consumption Expenditures) price index recorded a year-over-year increase of 2.2%, which is lower than economists' expectations. The month-over-month increase was just 0.1%. The Core PCE, excluding food and energy, also rose 0.1% from the previous month and increased 2.7% year-over-year, aligning with expectations. This decrease in inflation is seen as a positive sign for the Federal Reserve's policy decisions going forward.
Stock Forecasts
XLY
Positive
The recent decline in inflation suggests that the Federal Reserve may adopt a more accommodative monetary policy, potentially lowering interest rates if the trend continues. This environment could support growth in consumer-driven sectors.
Related News
American Social owner Rick Mijares says thousands are without power and many residents remain displaced in the aftermath of Hurrica
Housing inflation eased in September in 'sharp reversal' from previous month
Oct 10, 2024, 11:29 AM
Shelter cost increases cooled on a monthly basis in September, an indication the most stubborn contributor of inflation may finally be giving ground.
Here's the inflation breakdown for September 2024 — in one chart
Oct 10, 2024, 10:52 AM
Inflation fell in September as gasoline prices declined and housing inflation moderated, according to the consumer price index.