US PCE inflation strengthens in August amid solid consumer spending.
US inflation firmed in August, with the personal consumption expenditures price index rising 0.3% on the month and 3.4% year‑on‑year, according to the Bureau of Economic Analysis.
Source: Sharecast
Core PCE, which strips out volatile food and energy costs, increased 0.2% on the month and 3.0% over the year.
Personal consumption expenditures jumped $190.8bn, a 0.9% monthly rise, driven by a $114.1bn increase in goods spending and a $76.7bn rise in services. Real PCE was up 0.6%.
Personal income rose $66.6bn, or 0.2%, while disposable personal income increased $68.6bn. Personal outlays climbed $190.7bn, while the saving rate held at 4.1%, with total savings at $990.2bn.
The BEA said August's income growth was led by higher compensation - particularly private‑sector wages - and increased government social benefits, including Medicare and Social Security.
Reporting by Iain Gilbert at Sharecast.com
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