Kashkari Says Inflation Still Too High Despite Softer PCE Data

Minneapolis Federal Reserve President Neel Kashkari expressed concerns about inflation, stating that it remains 'still too high' despite softer-than-expected PCE data. The core version of the index, which strips out volatile food and energy prices, came in at 3% on an annual basis for August.

Kashkari's comments followed the release of the personal consumption expenditures price index, the Fed's preferred gauge of inflation. He noted that there are various measures of inflation, but it has been running around a 3% rate for more than five years.

The Fed recently implemented its first interest rate hike in three years to combat higher-than-preferred price growth, and Kashkari hinted at the possibility of another increase in the future. The central bank signaled that economic data released on consumer spending and gross domestic product show the economy is resilient.