Core PCE Inflation Comes In as Expected, Paving Way for October Rate Cut
Inflation picked up in line with economists’ expectations in August, leaving an opening for a possible interest rate cut in October by the Federal Reserve.
The core personal consumption expenditures price index, which excludes food and energy and is the Fed’s preferred inflation gauge, rose 0.2% from the month prior and 2.9% year over year, the Bureau of Economic Analysis reported Friday. Economists surveyed by FactSet had expected a 0.2% monthly increase and a 2.9% annual rise. In comparison, in July, core PCE rose by 0.3% from a month earlier and 2.9% from a year earlier.
Headline PCE, which includes all categories, rose 0.3% on the month and 2.7% from a year earlier, matching forecasts.