A key measure of inflation appears to be stuck significantly higher than levels consistent with the Federal Reserve’s price stability goal.
The so-called core personal consumption expenditures (PCE) price index, which excludes food and energy prices, rose 0.1 percent from July, the Bureau of Economic Analysis said Friday. That was in-line with expectations and below the 0.2 percent increase in the prior month.
Compared with a year ago, core prices are up 2.7 percent, a bit higher than the 2.6 percent recorded last month. Before rounding, the change was even smaller: from 2.64941 percent to 2.67847 percent.
The Federal Reserve targets two percent inflation in the all-inclusive price index. This rose 0.1 percent for the month, a slowdown from the 0.2 percent recorded in July. For the year, the overall index is up 2.2 percent, slightly below the 2.3 percent forecast and a significant decline from the 2.5 percent recorded a month ago.
