Core PCE index up just 0.1% in August; markets yawn

29 September 2023

 

Summary: US core PCE price index up 0.1% in August, less than expected; annual rate slows 4.3% to 3.9%; Treasury yields barely move; Fed rate-cut expectations for 2024 firm a little. One of the US Fed’s favoured measures of inflation is the change in the core personal consumption expenditures (PCE) price index. After hitting the Fed’s target at the time of 2.0% in mid-2018, the annual rate then hovered in...

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