US inflation stays elevated as energy costs rise

US inflation remained elevated in August, with the Federal Reserve's preferred gauge, the Personal Consumption Expenditures price index, rising 0.3% from July and holding at an annual rate of 3.4%, driven by war-related energy price increases. Core PCE inflation, excluding food and energy, stayed at 3% annually for a third straight month. Despite this, inflation-adjusted consumer spending surged 0.6% monthly, the strongest in over a year, though the personal saving rate fell to a nearly four-year low of 4.1%. The Commerce Department's annual methodology revisions lowered July's previously reported rates, with the overall index revised down from 3.7% to 3.4%. Strong job growth supports spending, and economists expect September's jobs report, due Friday, to show 94,000 new jobs.