US PCE price deflator up for third month

28 August 2020

 

Summary: US Fed’s favoured inflation measure rises 0.3%; below market expectations; previous month revised up; annual rate increases for third consecutive month; Treasury bond yields mixed.   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 2.0% in mid-2018, the annual rate then hovered in a range between 1.8% and 2.0% before...

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