PCE Inflation Rises Less Than Expected in August

US inflation rose less than expected in August, with prices increasing 0.3 percent after a downwardly revised 0.1 percent gain in July.

The Commerce Department's Bureau of Economic Analysis reported that the Personal Consumption Expenditures Price Index (PCE) rose 0.3 percent last month, while economists polled by Reuters had forecast a 0.4 percent increase.

Gasoline prices rebounded by 4.4 percent in August, driving inflation for the month. Food prices remained unchanged.

Excluding volatile food and energy components, core PCE inflation rose 0.2 percent over the month after a downwardly revised 0.1 percent gain in July. Core PCE inflation increased 3.0 percent year-on-year in August.