Inflation & Prices
US Core PCE Prices Post Smallest Monthly Rise Since Late 2020
- Fed’s preferred core inflation measure edged up 0.1% in August
- Real household spending eeked out modest gain after July jump
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The Federal Reserve’s preferred measure of underlying inflation rose at the slowest monthly pace since late 2020, helping to lay the groundwork for policymakers to forgo an interest-rate hike at their next meeting.
The core personal consumption expenditures price index, which strips out the volatile food and energy components, climbed 0.1% in August, according to the Bureau of Economic Analysis report out Friday. A key gauge of services costs watched closely by the Fed also posted the smallest monthly advance since 2020.