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In August, headline inflation was up 0.3 percentage points from the month before, measuring a steady 3.4% year over year.
Core PCE, the Fed’s preferred inflation measure, hit an annual rate of 3.3% today. But there’s not that much the Fed can do when there are so many factors outside of its control.
The Atlanta Fed’s sticky price CPI makes a prediction about what inflation will be in the years ahead.
Even when temporary outlier categories are out of the picture, prices still rose more than the Fed’s 2% target in April.
Friday’s personal consumption expenditure data drop will give policymakers a broader picture of what’s happening with inflation.
Start with the fact that most consumers don’t spent a whole lot on imported goods.
Wages are also rising but people aren't spending as much.
The latest Personal Consumption Expenditures index, or PCE, will be released Friday. Experts say there are other clues the Fed is looking for, too.
These measures of inflation track the prices consumers pay and the prices producers receive for their wares. But they don’t always line up.
Rising costs for prescriptions and hospital services were felt in latest PCE report, though health inflation has been mild in the past year.
