Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected

The Commerce Department reported that the personal consumption expenditures price index rose 0.3% in August, bringing the 12-month gain to 3.4%. Excluding food and energy, core inflation reached 3%, while personal income rose 0.2% and spending increased 0.9%. Both levels remain above the Federal Reserve's 2% target, potentially prompting further rate hikes.