US inflation rose less than expected in August, with the Federal Reserve’s closely watched personal consumption expenditures price index increasing by 0.3% from the previous month.
The rise followed a revised 0.1% increase in July and fell short of economists’ expectations for a 0.4% increase, according to Commerce Department data.
Annual PCE inflation stood at 3.4% in August, unchanged from the revised figure for July. Core PCE inflation, which excludes food and energy prices, rose by 0.2% over the month, below forecasts of 0.3%.
Core prices had increased by a revised 0.1% in July, while the annual rate of core PCE inflation remained at 3.0% in August.
The PCE price index is closely monitored by the Federal Reserve as a key measure of inflation. The report also showed that personal income rose by 0.2% in August, following a 0.3% increase in July.
Personal spending increased by 0.9% in August, after edging up by 0.1% the previous month.
