Inflation Dips Below Projections as Fed Ponders Future Rate Hikes

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

This marks a 0.3 percent increase from July and a year-over-year rise of 3.4 percent, excluding volatile food and energy prices.

The latest PCE price index reading was below projections from the Federal Reserve Bank of Cleveland, which estimated annual prices would be up by 3.7 percent year-over-year in August.

In response to persistent inflation, the FOMC raised interest rates by a quarter point earlier this month to a range of 3.75 percent to 4 percent, with multiple officials forecasting future rate hikes.