Federal Reserve’s Preferred Inflation Gauge Shows Price Pressures Eased Last Month: U.S. News & World Report Analysis

The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) index, showed that price pressures eased last month, according to a report from the U.S. News & World Report.

The report indicated that the PCE index rose by 0.2% in August, which was slightly lower than the 0.3% increase in July. This data suggests that inflation may be starting to stabilize after months of rapid growth.

Economists have been closely watching inflation indicators as the economy continues to recover from the impact of the COVID-19 pandemic. The Federal Reserve has been grappling with how to manage rising prices while also supporting economic growth.

The easing of price pressures in August could provide some relief for consumers who have been facing higher costs for goods and services. However, economists caution that inflation is still a concern and will need to be monitored closely in the coming months.

The Federal Reserve has indicated that it may begin to taper its bond-buying program later this year in response to the improving economic outlook. The central bank is also expected to raise interest rates in the future to help combat inflation.

Overall, the latest data on the PCE index suggests that inflation may be starting to moderate, but economists will continue to keep a close eye on price pressures in the months ahead.