Fed’s preferred gauge showed core inflation at 3.0% in August
Description: The Federal Reserve’s preferred inflation gauge showed that core inflation rose 3.0% over the year in August, coming in below economists’ 3.3% forecast.
The broader Personal Consumption Expenditures (PCE) price index increased 0.3% in August, bringing annual headline inflation to 3.4%, while core PCE rose 0.2% for the month.
Energy prices were a major contributor to the increase, with gasoline prices rising 4.4% and transportation services increasing 1.4%.
At the same time, consumer spending remained strong, rising 0.9% in August, while personal income increased 0.2%, giving the Federal Reserve mixed signals about inflation and economic demand, CNBC has reported.
The report provided a softer inflation reading than expected, but core inflation remains above the Fed’s 2% target, leaving policymakers with continued uncertainty over the timing of future interest-rate decisions.
read more: https://www.cnbc.com/2026/09/30/feds-preferred-gauge-showed-core-inflation-at-3point0percent-in-august-much-lighter-than-expected.html Close description
The broader Personal Consumption Expenditures (PCE) price index increased 0.3% in August, bringing annual headline inflation to 3.4%, while core PCE rose 0.2% for the month.
Energy prices were a major contributor to the increase, with gasoline prices rising 4.4% and transportation services increasing 1.4%.
At the same time, consumer spending remained strong, rising 0.9% in August, while personal income increased 0.2%, giving the Federal Reserve mixed signals about inflation and economic demand, CNBC has reported.
The report provided a softer inflation reading than expected, but core inflation remains above the Fed’s 2% target, leaving policymakers with continued uncertainty over the timing of future interest-rate decisions.
read more: https://www.cnbc.com/2026/09/30/feds-preferred-gauge-showed-core-inflation-at-3point0percent-in-august-much-lighter-than-expected.html Close description
