Fed's PCE Price Index Dips to 3.4 Percent in August

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 figure represents a slight decrease from July, when prices rose 0.3 percent, and is still above the Fed's 2 percent target for five-plus years.

The PCE price index measures inflation excluding food and energy prices, which was also at 3 percent in August, down from the Cleveland Fed's projection of 3.4 percent.

Multiple FOMC officials have forecasted future rate hikes to combat persistent inflation, with Anna Paulson saying economic conditions warrant 'modest further tightening' if they continue.