PCE Report Shows Inflation Easing, Impacting Borrowing Costs

Friday, 27 September 2024, 11:40

PCE report reveals inflation cooled, offering relief to consumers and hinting at potential decreases in borrowing costs. The report shows the Personal Consumption Expenditures price index increased 2.2%, down from 2.5% in July, suggesting a move toward the Fed’s 2% goal.

Cnn — PCE Report Shows Inflation Easing, Impacting Borrowing Costs

PCE Report Highlights Inflation Trends

The PCE report indicates a significant cooling of inflation, with consumers facing a 2.2% rise in prices for the year ending in August, contrasted with 2.5% from July. This development is crucial as it aligns with the Federal Reserve’s objectives.

Monthly Price Movement Reflects Economic Trends

In August, prices rose just 0.1%, down from a 0.2% increase in July. The core inflation, excluding food and energy, has slightly increased to 2.7%% from 2.6%%. This pattern gives economists reason to anticipate future interest rate cuts by the Fed.

Implications for Consumers

PCE report shows inflation easing
Potential for lower interest rates
Core inflation aligns with expectations

Overall, this PCE report represents a positive shift in economic conditions that could benefit consumers and influence monetary policy.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

PCE Report Highlights Inflation Trends

Monthly Price Movement Reflects Economic Trends

Implications for Consumers

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