Fed’s Preferred Inflation Index PCE Rises 2.2% in August, Close to 2% Target

September 27, 2024

On September 27, COINOTAG reported that Nick Timiraos, often regarded as the “Fed mouthpiece,” highlighted recent data concerning the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditure Index (PCE). The PCE index increased by 2.2% over the year ending in August, closely aligning with the Fed’s target of 2%. This is a significant drop from the previous year’s 3.4% and an even steeper decline from the 6.6% two years prior. Excluding the typically volatile food and energy sectors, core PCE rose 2.7% year-over-year in August. Comparatively, the core inflation rates stood at 3.8% a year ago and 5.4% two years back. These figures point towards a noticeable easing in inflationary pressures, reflecting the Fed’s ongoing efforts to stabilize the economy.