August PCE Report: PCE Inflation Index Up 2.7%, In Line With Expectations

The August Personal Consumption Expenditures Price Index increased in line with expectations, up 2.7% from year-ago levels.

When volatile food and energy costs are factored out, the Federal Reserve’s preferred measure of inflation increased 2.9% from one year ago, below expectations. Economists forecast that the core PCE inflation index would rise 3.0%.

The PCE Price Index increased 0.26% from month-ago levels. Excluding food and energy, the PCE Price Index increased 0.23%.

August PCE Inflation Report HighlightsThe PCE Price Index rose 0.26% in August, below the FactSet consensus forecast for a 0.3% increase and following an increase of 0.16% in July.Core PCE rose 0.23% in August, above forecasts for a 0.21% increase and following an increase of 0.24% in July.The PCE Price Index year over year rose 2.7% in August, in line with forecasts and following an increase of 2.6% in July.Core PCE year over year rose 2.9% in August, below forecasts for a 3.0% increase and following an increase of the same amount in July.

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