#uscorepceeasesto3%inaugust The latest US inflation data brought a softer reading for the Federal Reserve’s closely watched core PCE measure.
According to the US Bureau of Economic Analysis:
• Core PCE: 3.0% YoY in August
• Core PCE: +0.2% MoM
• Headline PCE: 3.4% YoY
• Headline PCE: +0.3% MoM
Core PCE excludes food and energy prices and is closely watched when assessing underlying inflation trends.
The August core reading was lower than the 3.3% annual rate that economists had expected in some market forecasts. Reuters reported that the softer inflation data could reduce the immediate pressure for another Federal Reserve rate increase, although inflation is still above the Fed’s 2% target.
For crypto and other risk assets, inflation data matters because it can influence expectations around US interest rates and financial conditions. But one monthly inflation report does not determine the next market move.
I’ll be watching the next inflation readings, employment data and Federal Reserve communication for a clearer picture.
DYOR. This post is for information only and is not financial or investment advice. Markets can move in either direction, and losses are possible.
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