US core inflation eases to 3.0% in August, below forecasts

US core inflation, measured by the PCE index, fell to 3.0 percent in August, down from 3.3 percent in July and below analyst forecasts of 3.3 percent, signaling easing price pressures. The lower-than-expected figure excludes volatile energy and food costs. Overall PCE inflation, including all consumer prices, was 3.4 percent annually, also below the predicted 3.7 percent. The Federal Reserve closely watches this indicator for interest rate decisions. Unlike the CPI, which uses a fixed basket of goods, the PCE measure reflects actual consumption patterns. The Fed's inflation target remains at 2.0 percent, and this data provides context for future monetary policy adjustments.