The Federal Reserve’s preferred inflation measure came in firmly below economists’ expectations last month, new government data show.
August’s annual personal consumption expenditures (PCE) price index was unchanged at 3.4 percent, according to a report released by the Bureau of Economic Analysis on Sept. 30.
The consensus estimate was 3.7 percent.
The July reading was revised downward to 3.4 percent from 3.7 percent.
On a month-over-month basis, PCE inflation rose 0.3 percent, below the market forecast of 0.4 percent.
Stripping out volatile food and energy prices, the 12-month core PCE price index was also flat at a much lower-than-expected 3 percent. Core PCE inflation edged up 0.2 percent, slightly under economists’ forecasts….