Signs of US goods inflation pressures “easing”; core PCE inflation up 0.6% in August

30 September 2022

 

Summary: US core PCE price index up 0.6% in August, slightly above expectations; annual rate accelerates from 4.7% to 4.9%; “growing signs” goods inflation pressures easing, slowing earnings growth “key”; Treasury yields down; Fed rate-rise expectations firm. 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,...

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