US inflation rises less than expected

The BEA revised its framework for software and hardware deflation, portfolio management fees and legal services in the PCE price index, revising the inflation data going back to 2021.BREAKING: US August PCE inflation, the Fed's preferred inflation metric, falls to 3.4%, below expectations of 3.7%.Core PCE inflation fell to 3.0%, below expectations of 3.3%.July headline and core PCE inflation were also revised down by 30 basis points each.October rate…Excluding the….

The so-called core PCE was initially reported to have increased 0.2% in July.

Core PCE primarily inflation increased 3.0% year-on-year August after an adjusted increase of 3.3% in the 12 months through July.The Fed this month increased bank borrowing costs to the 3.75%-4.00 range, marking the first rate hike in three years.

The odds of an October rate hike were reduced by New York Fed President John Willaims’ comments on Tuesday that there is no immediate necessity to proceed.Furthermore, financial markets priced in a roughly 51.5% ahead of further policy restrictions next month down from 70% on Monday.

US inflation rises less than expected: What to know September 30, 2026.