US announces August inflation index

VTV.vn - One of the notable economic data of the US economy that has just been announced is the personal consumption expenditures (PCE) price index for August.

Specifically, the overall PCE price index recorded an increase of 2.7% compared to the same period last year, a slight increase compared to July data.

Excluding food and energy prices, core PCE - the US Federal Reserve's leading inflation measure - rose 2.9%, the same as last month and also in line with market forecasts.

The steady August data continued to suggest that the tariffs did not create the spike in consumer prices that had been feared, a basis for the Fed to maintain its momentum in cutting interest rates later this year. The odds of a 25-point rate cut in October have now risen to nearly 88%, according to the CME interest rate tracker.

Although the Fed has set a 2% inflation target, the current data has not been enough to prompt policymakers to change their plans. At last week's meeting, the Federal Open Market Committee (FOMC) approved a 0.25 percentage point cut in the policy rate, bringing the target range down to 4%-4.25%. This was the first cut this year and the Fed also signaled two more cuts before the end of the year.

Not all Fed officials agree, however. Some remain cautious, concerned that room for further policy easing is shrinking. Fed Chairman Jerome Powell has repeatedly stressed that the tariffs may only cause a temporary spike in prices, not long-term inflation.

Meanwhile, investors now expect the Fed to continue cutting interest rates at its October meeting, while optimism for a second cut in December remains mixed.

Source: https://vtv.vn/my-cong-bo-chi-so-lam-phat-thang-8-100250927061108422.htm