Fed’s preferred measure of inflation dips to 3.4 percent in August
Summary
The Federal Reserve’s favored inflation measure, the personal consumption expenditures (PCE) price index, rose 0.3% from July to August and was up 3.4% compared to the prior year. Several Federal Reserve officials indicated that more interest rate increases might happen in the future to help control inflation.Key Facts
- The PCE price index increased by 0.3% from July to August.
- On a yearly basis, the PCE increased 3.4% through August.
- The PCE price index is the Federal Reserve’s preferred measure of inflation.
- Data was released by the Bureau of Economic Analysis on Wednesday.
- Federal Reserve officials hinted that more interest rate hikes could come.
- Interest rate hikes are used to slow inflation by making borrowing more expensive.
- Inflation has been a key focus for the Federal Reserve in recent years.
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