The Federal Reserve's preferred&nbsp;<a href="https://www.foxbusiness.com/category/inflation" target="_blank" rel="noopener">inflation gauge</a> showed that inflationary pressures remained elevated in August, as policymakers seek to balance the need to restore price stability against a weakening labor market following last week's interest rate cut.

The Commerce Department on Friday reported that the&nbsp;<a href="https://www.foxbusiness.com/category/economic-indicators" target="_blank" rel="noopener">personal consumption expenditures (PCE)</a> index rose 0.3% in August from a month ago and is up 2.7% from last year.&nbsp;

Core PCE, which excludes volatile measurements of food and energy prices, was up 0.2% on a monthly basis and 2.9% year-over-year.

Federal Reserve policymakers are focusing on the PCE headline figure as they try to bring inflation back to their long-run target of 2%, though they view core data as a better indicator of inflation. Headline PCE ticked higher from 2.6% in July to 2.7% in August, while core PCE held steady at 2.9% over that period.

This is a developing story. Please check back for updates.

The Commerce Department released the August PCE inflation data which showed that inflationary pressures remained well above the Fed's 2% target last month as tariffs push prices up.{ai:summary}Inflation pressures remain elevated as the Fed weighs price stability against a weakening labor market after last week's rate cut.PCE rose 0.3% in August to 2.7% YoY; core PCE up 0.2% to 2.9% YoY, with July's headline at 2.6% #economy

Fed's favored inflation gauge shows consumer prices remained elevated in August

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