Fed Inflation Gauge Falls Below Projections Amid Rate Hike Bets

The Federal Reserve's preferred measure of inflation, the PCE price index, dipped to 3.4 percent in August, according to data released by the Bureau of Economic Analysis.

This is a decrease from July and below the projection from the Federal Reserve Bank of Cleveland, which estimated annual prices would be up 3.7 percent year-over-year.

The PCE price index also showed that core inflation, excluding food and energy prices, remained at 3 percent annually in August.