U.S. August PCE Inflation Moderates Below Expectations

The U.S. Personal Consumption Expenditures (PCE) price index rose 0.3% in August, with the annual rate at 3.4%. The core PCE, excluding food and energy, increased 0.2% monthly and 3.0% annually. While inflation remains above the Federal Reserve's 2% target, the data showed moderation, leading to a decline in expectations for a rate hike in October. Consumer spending grew by 0.9% in August, while personal income rose 0.2%.