U.S. Core PCE Inflation Eases to 3.0% as Spending Jumps 0.9%
The headline PCE price index rose 3.4% annually in August, while real consumer spending increased 0.6%.
U.S. core inflation eased in August while consumer spending accelerated, giving markets a mixed signal as they assess the Federal Reserve’s path for interest rates.
The core personal consumption expenditures price index, which excludes food and energy, increased 0.2% from July and 3.0% from a year earlier. The Personal Income and Outlays report was released Sept. 30 at 8:30 a.m. ET (12:30 p.m. UTC).
The headline PCE price index rose 0.3% month over month and 3.4% annually. The monthly core increase was below the 0.3% gain cited in the report’s market expectations, while the headline rise was below the expected 0.4% increase.
Personal consumption expenditures climbed $190.8 billion, or 0.9%, in August. Real PCE, which removes the effect of higher prices, increased $92.8 billion, or 0.6%. Spending on goods rose $114.1 billion, while services spending increased $76.7 billion.
Personal income increased $66.6 billion, or 0.2%, and disposable personal income rose $68.6 billion, or 0.3%. The personal saving rate was 4.1%.
The next report, covering September, is scheduled for Oct. 29 at 8:30 a.m. ET (12:30 p.m. UTC).
