August PCE Inflation Holds at 3.4%, Real Spending Rises 0.6%
The BEA price index rose 0.3% in August from July, while inflation-adjusted consumer spending climbed 0.6%.
The U.S. Bureau of Economic Analysis reported that its personal consumption expenditures price index rose 0.3% in August from July and 3.4% over the year. The monthly increase accelerated from July’s revised 0.1%, while the annual rate matched July’s revised 3.4%.
Core prices, excluding food and energy, rose 0.2% in August and 3.0% over 12 months. The BEA revised estimates back to January 2021 in its annual update, including the earlier July reading, so comparisons with numbers published before this release have changed.
Inflation-adjusted consumer spending increased 0.6% in August, up from 0.1% in July. The personal saving rate was 4.1%. Reuters reported that both monthly PCE price readings came in below economists’ forecasts, while inflation remained above the Federal Reserve’s 2% target.
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