Keeping you up to date on the latest data releases.
The Personal Consumption Expenditure (PCE) price index rose 3.0 percent in August, following a 4.5 percent spike in July. Food prices jumped up 7.5 percent in August, and volatile energy prices rose 15.4 percent, contributing to the overall increase. Over the past 12 months, the PCE price index is up 2.9 percent. Excluding food and energy prices, the “core” PCE price index rose 1.8 percent in August, a slight deceleration from a 2.4 percent increase in July. On a year-over-year basis the index is up 1.6 percent. August&rsqu;s slight deceleration the the core PCE price index contrasts the upward move in the core CPI, which rose 3.0 percent during the month after rising 2.7 percent in July. Part of the disagreement between the two measures can be tied to nonmarket-based imputed prices, as the market-based core PCE rose 2.4 percent in August, following a 2.2 percent gain in July (it is also not unusual to see some disagreement between the two measures in an environment of rising rents, which receive a much higher weight in the CPI). Still, the market-based core measure is up just 1.6 percent over the past year.