August US Core PCE Price Index gained 0.6% vs. expected 0.5% gain. The 12-month increase in Core PCE rises to 4.9% vs. expected 4.7%.
August US PCE Price Index gained 0.3% vs. expected 0.3% gain. The 12-month increase in PCE rises to 6.2% vs. expected 6.0%.
PCE is a major indicator for the Fed as it tracks inflation. The central bank has said it needs to see a consistent slowdown in prices to make less aggressive interest rate hikes. Earlier this month, the Fed lifted interest rates again by 0.75 a percentage point and hinted that rates could continue to go higher. According to the CME FedWatch Tool, investors put a 58.5% chance of another 0.75-point hike at the Fed's next meeting in November.
