The Federal Reserve's preferred inflation measure is above target, and consumer spending growth remains strong
2025-09-26 12:54:12
US data released on Friday showed that the Fed's preferred measure of inflation remained above target last month, with consumer prices rising 0.3 per cent month-on-month in August, bringing PCE inflation to 2.7 per cent over the past year, up from 2.6 per cent a month earlier and holding its core measure at 2.9 per cent. Meanwhile, consumer spending remained strong in August, rising 0.6 per cent, up from 0.5 per cent in July. The data pose a challenge to the Fed's decision-making.
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