VOLUME 214: WEEK ENDING AUGUST 31, 2024

The Commerce Department reported that the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure, increased by 0.2% from the previous month. Annually, prices rose by 2.5%, meeting expectations. Excluding the more volatile food and energy prices, core inflation also rose by 0.2% for the month and 2.6% over the past year.

“Inflation still looks contained, and that’s good news for the economy and for investors looking ahead to lower interest rates,” said Chris Larkin, managing director of trading and investing at E*Trade.

The report also highlighted that consumer spending increased by 0.5% in July, up from a 0.3% rise in June. This shows continued consumer resilience despite high prices, steep interest rates, and the resumption of federal student loan payments. Additionally, personal income rose by 0.3% last month, slightly above expectations.

Source: Fox Business