U.S. Core PCE Inflation Beats Expectations Again in August

By Geoffrey Smith

Investing.com — The Federal Reserve’s preferred measure of inflation outran expectations again in August, keeping up the pressure on the central bank to continue tightening monetary policy.

The core price index for , which is a more accurate reflection of the actual spending patterns of U.S. consumers than the Consumer Price Index, rose 0.6% on the month, after rising only 0.1% in July. Analysts had expected an increase of 0.5%.

Stripping out food and energy, inflation rose to 4.9% on the year, from an upwardly-revised 4.7% in July.

rose more gently, by only 0.3%, owing largely to the steady decline in gasoline prices through the month, which led to overall energy prices falling 5.5% on the month. By contrast, food prices rose 0.8%, the Bureau of Economic Analysis said.

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