US Inflation Data Eases Pressure on Fed Rate Hike

The US Federal Reserve's preferred inflation gauge came in lower than expected for August, leading to reduced bets on an October interest rate hike.

The personal consumption expenditures (PCE) index measures prices including healthcare and adjusting for product switching. It rose 3.4% from a year ago, below the forecasted 3.7%. Core PCE, excluding food and energy, increased 3%, matching forecasts.

However, an asterisk is attached to this news as the inflation gauge revisions go back to 2021 due to changes in categories measured by the agency responsible for crunching these numbers.