Core inflation was little changed in August, according to the Federal Reserve's primary forecasting tool, likely keeping the central bank on pace for interest rate reductions ahead.

The personal consumption expenditures price index posted a 0.3% gain for the month, putting the annual headline inflation rate at 2.7%, the Commerce Department reported Friday.

Excluding food and energy, the more closely followed core PCE price level was 2.9% on an annual basis after rising 0.2% for the month.

The headline annual inflation rate was a slight increase from the 2.6% in July while the core rate was the same.

All of the numbers were in line with the Dow Jones consensus forecast.

Spending and income numbers were slightly higher than expected.

Personal income increased 0.4% for the month, whil

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