US Inflation Rises Less Than Expected in August

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

Economists polled by Reuters had predicted a 0.4 percent rise in PCE price index, which is the metric tracked by the Federal Reserve for its 2 percent inflation target.

The core PCE inflation rate, excluding volatile food and energy components, climbed 0.2 percent over the month after a downwardly revised 0.1 percent rise in July.

This news may reduce the likelihood of another interest rate hike from the Federal Reserve next month, as New York Fed President John Williams stated 'no urgency' for further action on Tuesday.