US Inflation Rate Cools Down, Reducing Odds for October Fed Hike

The latest US economic data has revealed a softer inflation rate in August, according to the Federal Reserve's primary gauge. The personal consumption expenditures price index rose by just 0.3% for the month, bringing the 12-month gain down to 3.4%. This is lower than economists' expectations of 0.3% and 3.7%, respectively.

The core inflation rate, which excludes food and energy prices, also fell short of predictions, coming in at 3.0% compared to the expected 3.3%. Although the Fed officially tracks the headline PCE number, officials often consider core a better indicator of long-term trends.

In related news, the Commerce Department reported a revision to Q2 GDP, which now stands at 2.2%, up from the initial estimate of 1.5%.