Inflation Eases to 3.4% as FOMC Officials Hint at Future Rate Hikes
The Federal Reserve's preferred measure of inflation, the personal consumption expenditures (PCE) price index, dipped in August to 3.4 percent year-over-year, according to data released by the Bureau of Economic Analysis.
This marks a decrease from July, where the PCE price index rose 0.3 percent from the previous month.
Excluding more volatile food and energy prices, annual inflation in August was at 3 percent, as measured by the PCE data.
The latest inflation measurements were 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.
Multiple FOMC officials have forecasted future rate hikes, with Fed Governor Michael Barr stating that 'further policy adjustments' are likely needed to bring inflation down.
Barr also mentioned that risks to achieving the inflation target have increased while risks to the labor market have receded, necessitating a recalibration of policy.