Economy / Markets
US inflation cooled more than expected in August
The Federal Reserve's preferred inflation gauge came in below forecasts for August. The Bureau of Economic Analysis reported the PCE price index rose 0.3% on the month and 3.4% from a year earlier, while core prices, which exclude food and energy, rose 0.2% and 3.0%. Disposable personal income increased 0.3% and consumer spending rose 0.9%, or $190.8 billion, with the personal saving rate at 4.1%. Reuters reported the reading gave the Fed some breathing room, and traders pared back bets on another rate increase at the October meeting.