US Fed’s preferred inflation measure edges down in August

The US Federal Reserve’s preferred inflation measure, the PCE price index, decreased to 2.2% in August from 2.5% in July. This supports the Fed’s recent decision to begin cutting interest rates. The core PCE index, excluding food and energy, rose slightly to 2.7%. Economists view this data as showing progress on inflation, potentially allowing for continued rate cuts. Consumer spending increased by 0.1% in August, indicating a slowing momentum in spending. Future rate decisions will likely depend on labor market data.READ FULL