Day: 27 September 2024

In August 2024, U.S. inflation edged closer to the Federal Reserve’s target, potentially paving the way for future reductions in interest rates, according to a report from the U.S. Commerce Department released Friday 27th September 2024

The personal consumption expenditures price index (PCE), which is the Fed’s preferred gauge for assessing the cost of goods and services in the U.S. economy, increased by 0.1% for the month. This increment set the annual inflation rate at 2.2%.

Economists had anticipated a 0.1% monthly increase in the PCE inflation figure and a 2.3% rise from the previous year.

When food and energy are excluded, the core PCE, which rose by 0.1% in August 2024, showed a 2.7% increase from the same period last year.

Federal Reserve officials often give more weight to the core PCE as a more accurate indicator of long-term inflationary trends. The projections were 0.2% monthly and 2.7% annually.