An inflation gauge closely watched by Federal Reserve policymakers continued to slow in August as the pace of price growth trended closer to the Fed's target.

The Commerce Department reported Friday that the personal consumption expenditures (PCE) price index rose 0.1% from the prior month and 2.2% year over year. The annual figure came in cooler than the estimates of economists polled by LSEG.

Core PCE, which excludes volatile food and energy prices, rose 0.1% for the month and increased 2.7% from a year ago, in line with estimates and little changed from a month ago.

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An inflation measure closely tracked by Federal Reserve policymakers fell in August to 2.2% as inflation continued to trend closer to the central bank's target.{ai:summary}The PCE price index, closely monitored by the Federal Reserve, showed a monthly increase of 0.1% in August, with an annual rise of 2.2%, falling below economist predictions. Core PCE, excluding food and energy, also rose 0.1% monthly and 2.7% yearly, matching estimates.This trend indicates a slowdown in inflation, aligning more closely with the Federal Reserve's targets. #economy

Inflation measure closely watched by the Fed fell to 2.2% in August

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