US inflation data for August came in largely as expected. Headline PCE rose 2.7% yoy, slightly up from July’s 2.6%. Core PCE held steady at 2.9% yoy. On the month, headline and core rose 0.3% mom and 0.2% mom, respectively, both in line with consensus.
Beyond inflation, the demand side showed more momentum. Personal income climbed 0.4% mom, above the 0.3% forecast. Personal spending gained 0.6% mom, also beating estimates of 0.5%.
For the Fed, the data reinforces the case for continued but measured easing. Inflation progress remains gradual, while firmer demand signals that the economy is not yet at risk of stalling.
