Inflation Moderates, Government Shutdown Looms, and Housing Market Fluctuates
The core personal consumption expenditures (PCE) price index rose 0.1% in August, less than expected, representing the smallest monthly increase since November 2020. In turn, it rose 3.9% from a year earlier, the smallest increase since June 2021 and less than the upwardly revised 4.3% in July. The broadly watched indicator for core services excluding housing rose just 0.14% in August, a more moderate reading than the increase seen the previous month. A continuation of moderating inflation would allow the Federal Reserve to maintain its rate levels.