The Fed's Preferred Inflation Gauge Declined More Than Expected in August, Yet Bond Yields Aren't Budging. Here's One Reason Why.
The core Personal Consumption Expenditures (PCE) price index rose 0.2% in August, less than economists expected.
Overview
Investors hoping for signs of softening inflation seemingly got what they wanted on Sept. 30 when the Federal Reserve's preferred inflation gauge came in much lighter than expected.
The Personal Consumption Expenditures (PCE)Price Index increased 0.3% seasonally adjusted in August, coming in at 3.4% year over year. Economists had been projecting increases of 0.3% and 3.7%, respectively.
Details
Core PCE, which excludes more volatile energy and food prices, rose 0.2% in August and 3% annually. Economists had been expecting 0.3% and 3.3%, respectively.
Source
Originally published at www.fool.com.
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