US: Annual core PCE price index remains steady at 2% in August

According to the data published by the U.S. Bureau of Economic Analysis, the PCE price index increased 0.1% on a monthly basis and the core PCE price index, which excludes volatile food and energy prices, rose less than 0.1% in the same period. On a yearly basis, the core PCE stayed unchanged at the Fed's target level of 2%.

Key quotes

• Personal income increased $60.3 billion (0.3 percent) in August according to estimates released today by the Bureau of Economic Analysis.
• Disposable personal income (DPI) increased $51.4 billion (0.3 percent) and personal consumption expenditures (PCE) increased $46.4 billion (0.3 percent).
• The increase in personal income in August primarily reflected increases in wages and salaries, government social benefits to persons, and nonfarm proprietors’ income.
• The $28.7 billion increase in real PCE in August reflected an increase of $15.3 billion in spending for goods and a $14.3 billion increase in spending for services.