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US PCE Price Index Jumps More Than Forecast While Spending Rises

  • Fed’s preferred gauge rose 0.3% in August, 6.2% from year ago
  • Core inflation measure also exceeded economists’ expectations
A customer shops at a store in Los Angeles, California, US.

A customer shops at a store in Los Angeles, California, US.

Photographer: Allison Dinner/Getty Images

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A key gauge of US inflation picked up steam in August, while consumer spending ticked up, suggesting resilience among American households in the face of rising prices across the economy.

The personal consumption expenditures price index, which the Federal Reserve uses for its inflation target, rose 0.3% from a month earlier, topping estimates. From a year ago, the gauge was up 6.2%, also higher than forecast and well above the central bank’s 2% goal.