US: Annual Core PCE Price Index Edges Higher

The Personal Consumption Expenditures (PCE) Price Index in August rose 0.3% on a monthly basis, the US Bureau of Economic Analysis reported on Thursday. On a yearly basis, the PCE Price Index increased to 1.4% from 1.1% in July.

More importantly, the Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, advanced to 1.6% from 1.4% in July and came in higher than analysts’ estimate of 1.4%. On a monthly basis, the Core PCE Price Index lower by 0.3%.