Inflation Eases to 3.4%, but Rate Hikes Still on the Table

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

This decrease comes after multiple central bank officials mentioned future interest rate hikes could be on the horizon.

The personal consumption expenditures (PCE) price index rose 0.3% from July to last month and was up 3.4% year-over-year, excluding food and energy prices, annual inflation in August was at 3%, according to PCE data.

Some Federal Reserve officials have forecasted future rate hikes, with the panel set to meet again on October 27-28.