The Fed’s preferred measure of inflation rose by much less than expected in August, data from the Commerce Department showed Wednesday.
\n\nThe personal consumption expenditures price index climbed 3.4 percent over the past 12 months through August. Economists had forecast a 3.7 percent increase.
\n\nFor the month, the PCE price index rose 0.3 percent, below the 0.4 percent increase forecast.
\n\nThe prior month’s inflation data was revised down. July’s PCE index now shows a 0.1 percent monthly increase, down from 0.2 percent. The annual increase was revised down to 3.4 percent from 3.7 percent.
\n\nExcluding food and energy, so-called core PCE prices rose by 0.2 percent for the month and three percent year-over-year. The consensus forecast was for a 0.3 percent increase for the month and 3.3 percent for the year.
\n\nGoods prices rose 0.3 percent in August compared with July. Services also rose by 0.3 percent.
\n\nEnergy prices were the main driver of inflation in August. Energy goods and services rose 2.3 percent, driven by a 4.4 percent increase in gasoline prices. Transportation services prices rose 1.4 percent.
\n\nThe large revisions and the latest monthly figures reflect annual adjustments to the way the index is calculated. The Bureau of…
Original source: https://www.breitbart.com/economy/
