Revised Inflation Data Fail to Meet Fed's Targets

The Bureau of Economic Analysis (BEA) released revised inflation data that showed a slight improvement in August, but it's not enough for the Federal Reserve to declare victory.

The Personal Consumption Expenditures Price Index (PCEPI), the Fed's preferred measure of inflation, rose 0.3 percent in August, up from 0.1 percent in July.

This increase may seem like a small change, but it's not enough to bring inflation back down to the Fed's target of 2 percent. In fact, revisions from the BEA actually lowered estimates of recent inflation without changing the overall growth rate of spending.