US Inflation Eases Amid Trade Deficit Woes

US inflation rose less than expected in August, potentially reducing the chances of another interest rate increase from the Federal Reserve next month.

The Personal Consumption Expenditures Price Index (PCE) increased by 0.3% last month after a downwardly revised 0.1% gain in July, according to the Commerce Department's Bureau of Economic Analysis. This was lower than the 0.4% increase forecasted by economists.

The PCE inflation rate for the 12 months through August advanced 3.4%, matching the previous month's estimate after a downwardly revised 3.4% gain in July.