August PCE Inflation Data: Federal Reserve's Key Measure Dips, Easing Market Concerns

August PCE Inflation Data: Federal Reserve's Key Measure Dips, Easing Market Concerns

According to data released today by the U.S. Burea of Economic Analysis (BEA), the Federal Reserve's preferred metric for inflation, known as the core personal-consumption expenditures (PCE) price index, showed a decrease in August.

The PCE report was released amid growing concerns about inflationary pressures that could prompt the Federal Reserve to adjust interest rates.

The core PCE inflation index rose by 3.9% year-over-year in August, a decrease from the revised 4.3% in July, as forecasted by economists. Monthly, the core PCE deflator increased by 0.1%, falling short of the anticipated 0.2% and down from July’s 0.2% increase.