Data released just moments ago from the U.S. Bureau of Economic Analysis showed that U.S. personal income rose by $95.7 billion in August, unchanged from July and exceeding expectations. The Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred measure of inflation, rose by 0.7% to $129.2 billion, compared to July’s 0.5% reading. The PCE index rose by 2.7% year-over-year, compared to 2.6% in July (expectations: 2.8).
The core CPI, which excludes food and energy prices and is closely monitored by the Federal Reserve, grew by 0.2% in August, compared to July’s 0.3% reading, and rose to 2.9% year-over-year, matching expectations.