The U.S. Department of Commerce announced on September 26 that the Personal Consumption Expenditures (PCE) price index for August rose by 2.7% compared to the same month last year.
This marks the highest increase in one year and four months since April 2024, when the rate stood at 2.8%. It is also a 0.3% increase from the previous month.
The core PCE price index, which excludes energy and food, rose by 2.9% year-on-year, the same rate as in August.
The PCE price index increases announced today matched the expert forecasts compiled by Dow Jones for both the year-on-year and month-on-month figures.
The PCE price index is an inflation indicator that measures the prices paid by U.S. residents when purchasing goods and services. The U.S. Federal Reserve uses the PCE price index, rather than the more widely known Consumer Price Index (CPI), as the basis for determining whether it is achieving its monetary policy goal of a 2% inflation rate.
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