The Core Personal Consumption Expenditures (Core PCE) index, which excludes volatile food and energy prices and is therefore the U.S. Federal Reserve's preferred inflation indicator, was unchanged in August in annualized terms compared to July. That matched the expectations of economists surveyed by The Wall Street Journal. Core PCE has increased 2.9% over the past 12 months.

The Personal Consumption Expenditures (PCE) index added 0.1% and 2.7% year-over-year, up from 2.6% in July and the Fed's 2% target. This index also matched Wall Street's forecasts.

Inflation remains a key benchmark for the target rate, which the Fed cut last week for the first time in nine months, WSJ notes. On Tuesday, the regulator's chief Jerome Powell allowed new moves toward easing this year if a weakening labor market outweighs inflation risks. Positive inflation data showing the limited impact of duties could be taken by the market as an additional argument in favor of further interest rate cuts, WSJ wrote.

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