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Inflation Gauge Hits Highest Since 1991 as Americans Spend More

  • Household outlays rise 0.8% on goods, after falling in July
  • PCE price index up 4.3% in August from year ago; core up 3.6%
Updated on

A closely watched measure of U.S. inflation rose the most on an annual basis in three decades, fueling concerns that price increases will last longer than expected and eventually hit consumer spending.

The personal consumption expenditures price gauge, which the Federal Reserve uses for its inflation target, rose 0.4% from a month earlier and 4.3% from a year earlier. The annual increase was the largest since 1991.