PCE Report Confirms Stable Inflation Amid Strong US Demand
The latest PCE inflation data for August 2025 aligns with expectations, showing no surprises as the Core rate holds steady at 2.9% year-over-year. Overall inflation edged up slightly to 2.7%, driven by modest increases in energy, food, and housing costs. Despite monetary tightening, US consumption remains resilient, with spending and income growth pushing the savings rate to 4.6%.
These figures reinforce the Federal Reserve's current trajectory, which anticipates two additional rate cuts before year-end. Markets remain calm as the economy progresses toward price stability without disruptive shocks. The Fed's measured approach appears justified, with no immediate need for policy adjustments.