US Inflation Hits 0.3% in August as Consumer Spending Surges

US inflation rose less than expected in August, according to data released by the Commerce Department's Bureau of Economic Analysis on Wednesday. The Personal Consumption Expenditures Price Index increased 0.3% last month after a downwardly revised 0.1% gain in July.

Economists polled by Reuters had forecast the PCE price index rising 0.4% after a previously reported 0.2% gain in July. In the 12 months through August, PCE inflation advanced 3.4% after increasing by a downwardly revised 3.4% in July.

The change in methodology for calculating prices for software and accessories, portfolio management fees, and legal services in the PCE price index contributed to the revision. The BEA also revised the inflation data going back to 2021.