US core PCE inflation rises 0.2% in August, annual rate hits 3.0%

US core PCE inflation rose 0.2% in August, below the 0.3% economists expected, with the annual rate at 3.0% versus a 3.3% forecast, according to the Commerce Department's Bureau of Economic Analysis. Overall PCE inflation increased 0.3% monthly and 2.6% annually, down from July's revised 3.4%. The Federal Reserve, targeting 2% inflation, raised its benchmark rate to 3.75%-4.00% this month, its first hike in three years. Consumer spending, over two-thirds of economic activity, rose 0.9% in August. Market odds for an October rate hike fell to about 51.5% after New York Fed President John Williams saw "no urgency" for further moves.