Fed’s favored inflation gauge accelerated slightly in August, report shows Economy Sep 26, 2025 6:17 PM EDT

WASHINGTON (AP) — The Federal Reserve’s favored inflation gauge accelerated slightly in August from a year earlier.

The Commerce Department reported Friday that its personal consumption expenditures (PCE) price index was up 2.7% in August from a year earlier, a tick higher from a 2.6% year-over-year increase in July and most since February.

READ MORE: U.S. inflation worsened last month, putting Fed in difficult spot as job market slows

Excluding volatile food and energy prices, so-called core PCE inflation showed a 2.9% increase in prices from August 2024, same as in July. The increases were what forecasters had expected.

Prices rose 0.3% from July, compared to a 0.2% increas

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