Oct 1, 2021 - Economy

Key inflation gauge rose faster than expected in August

Axios

Federal Reserve Chair Jerome Powell during a congressional hearing in September 2021. Photo: Al Drago/Bloomberg via Getty Images

The price of goods and services rose 0.3% in August for a second straight month, slightly faster than the 0.2% expected, according to the core personal consumption expenditures (PCE) price index released Friday.

Why it matters: The measure, which grew 3.6% year-over-year, is the primary way the Federal Reserve watches for inflation.

The big picture: The Fed hinted last month that it could start to wind down its pandemic stimulus programs as soon as November.

What they're saying: Fed chair Jerome Powell said this week that high inflation, driven by supply chain problems, could last longer than officials had anticipated, the Wall Street Journal reported.

The Fed projected in June that core PCE inflation would grow 3.0% in 2021.

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Key inflation gauge rose faster than expected in August

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