Inflation held steady in August, in line with economist forecasts

The core personal consumption expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation, rose slightly in August, in line with economists' expectations.

Inflation yardsticks such as the PCE index and the Consumer Price Index measure the change in prices over time of a typical basket of goods and services.

The core PCE, which excludes volatile fuel and food prices, shows a 2.9% in August on an annual basis, the same as July and in line with predictions from economists polled by financial data provider FactSet.

The PCE rose 2.7% on an annual basis, a slight increase from the 2.6% year-over-year increase in July and the highest since February, according to data released Friday by the Commerce Department.

Inflation has come down since rising prices prompt