Summary
The Federal Reserve's preferred measure of inflation showed a slight increase in August compared to the previous year. The personal consumption expenditures (PCE) price index rose 2.7% from August 2023 to August 2024. Core PCE inflation, which excludes food and energy, rose 2.9%.
Key Facts
- The PCE price index increased by 2.7% in August from the previous year.
- In July, the PCE price index had a year-over-year increase of 2.6%.
- Core PCE inflation, excluding food and energy, rose 2.9% in August.
- Monthly price increases were 0.3% overall, with core prices rising 0.2%.
- Consumer spending, adjusted for inflation, increased by 0.4% in August.
- Income for self-employed and business owners rose by 0.9% for the second month in a row.
- The Federal Reserve has lowered the interest rate to help the slowing job market.
- President Trump has criticized Fed Chair Jerome Powell and sought influence over the Fed's actions.
