The latest data reveals a slight uptick in inflation and continued strong consumer spending, keeping the Federal Reserve's approach unchanged amid labor market concerns.
US inflation, as measured by the Core PCE index, rose by 0.3% month-on-month in August, pushing annual inflation to 2.7%, while core inflation remained steady at 2.9%. Consumer spending grew by 0.6%, signaling robust economic activity. Despite a weakening labor market, inflationary pressures persist, leaving the Fed’s rate cut this year unchanged.