Economic Buzz: US personal consumption expenditures (PCE) price index climbs by 0.3%
The report said the personal consumption expenditures (PCE) price index climbed by 0.3 percent in August after rising by 0.2 percent in July.
Prices for services rose by 0.3 percent for the second consecutive month, while prices for goods crept up by 0.1 percent in August after edging down by 0.1 percent in July.
The annual rate of growth by the PCE price index ticked up to 2.7 percent in August from 2.6 percent in July.
Excluding food and energy prices, the core PCE price index rose by 0.2 percent in August, matching a revised increase in July. The annual rate of growth by the core PCE price index came in at 2.9 percent in August, unchanged from July.
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The report said personal income climbed by 0.4 percent in August, matching the increase seen in July. Disposable personal income, or personal income less personal current taxes, also increased by 0.4 percent for the second straight month.
Meanwhile, the Commerce Department said personal spending grew by 0.6 percent in August after rising by 0.5 percent in July. Excluding price changes, real personal spending climbed by 0.4 percent in August, matching the increase seen in the previous month.
With spending rising by slightly more than income, personal saving as a percentage of disposable personal income slipped to 4.6 percent in August from 4.8 percent in July.
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