US Q2 Core PCE Price Index Growth Revised to 2.6%
August data shows PCE inflation rising to 2.7% annually, with core PCE steady at 2.9%, amid strong consumer spending and ongoing inflation pressures for the Federal Reserve.
Summary
U.S. Commerce Department figures for August show the PCE price index rose 0.3% month-on-month, pushing annual PCE inflation to 2.7% from 2.6% in July. Core PCE inflation held at 2.9% year-on-year. Consumer spending grew 0.6% in August, up from 0.5% the previous month. The release comes despite signs of labor market weakness and follows the Federal Reserve’s first interest rate cut of the year, with elevated inflation pressures persisting.
Terms & Concepts
- PCE Price Index: The Personal Consumption Expenditures (PCE) price index measures the price change of goods and services consumed by individuals, and is the Federal Reserve's preferred inflation gauge.
- Core PCE Price Index: A measure of U.S. inflation excluding food and energy prices, used by the Federal Reserve to assess underlying inflation trends.