Fed's preferred inflation gauge shows prices increased less than Wall Street expected in August

Published On Sep 27, 2024, 8:36 AM

The latest data from the Federal Reserve’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, showed a smaller increase in prices than Wall Street anticipated for August. The index rose by 0.1% from the previous month, below expectations of 0.2%. On a yearly basis, the index increased by 2.7%, matching expectations. This data follows the Fed's recent interest rate cut and suggests that inflation pressures are easing. Fed Chairman Jerome Powell indicated a lower risk of rising inflation while concerns about the labor market have increased, leading to discussions about potential future interest rate cuts.