U.S. inflation cools in August as consumer spending jumps

U.S. inflation rose less than expected in August, with the Personal Consumption Expenditures Price Index up 0.3% for the month and 3.4% year-over-year, potentially reducing odds of another Federal Reserve rate hike next month. The Commerce Department reported core PCE inflation, excluding food and energy, climbed 0.2% monthly and 3.0% annually, both matching downwardly revised July figures. The Bureau of Economic Analysis also changed methodology for calculating certain prices, revising data back to 2021. Consumer spending surged 0.9% in August despite high inflation and borrowing costs, though a Conference Board survey showed consumer confidence plummeting to a near 12-½-year low in September. Fed officials have signaled no urgency for further action.