The Fed's preferred measure of inflation slowed in August and came in below expectations

The Personal Consumption Expenditures (PCE) price index rose 3.4% year-over-year in August, while economists had expected a 3.7% increase, according to Barron’s. In July, this figure was estimated at 3.7%.

Meanwhile, the Fed’s preferred core PCE—which excludes volatile food and energy prices—rose last month by 3% year-over-year and 0.2% month-over-month (in July, its growth rates were estimated at 3.3% year-over-year and 0.2% month-over-month). Economists had expected this measure to rise by 3.3% and 0.3%, respectively, in August.

Following the release of data showing that inflation slowed last month, U.S. stock index futures jumped, as noted by CNBC: Dow Jones futures rose 0.18%, S&P futures rose 0.24%, and Nasdaq 100 futures rose 0.2%.

This material is being updated

This article was AI-translated and verified by a human editor