August Inflation Rise Falls Short, US Trade Deficit Worsens

US inflation rose less than forecast in August, according to data released by the Commerce Department's Bureau of Economic Analysis. The Personal Consumption Expenditures Price Index increased 0.3% last month after a downwardly revised 0.1% gain in July.

Economists polled by Reuters had predicted the PCE price index would rise 0.4% following a previously reported 0.2% increase in July. However, on an annual basis, PCE inflation remained steady at 3.4%, unchanged from the downwardly revised figure for July.

The Commerce Department also announced that the US trade deficit in goods widened sharply in August to $132.6 billion, up 11.5% from July and exceeding economists' forecasts of a $115 billion shortfall.