U.S. August core PCE rises 0.2% from month earlier, below forecasts

U.S. core personal consumption expenditures prices rose 0.2% in August from a month earlier, below the 0.3% market forecast, according to the U.S. Bureau of Economic Analysis. On an annual basis, the core PCE price index rose 3.0%, also below expectations for a 3.3% increase. The core PCE price index, which excludes volatile energy and food prices, is widely viewed as a key inflation gauge for the Federal Reserve. A stronger-than-expected reading can weaken expectations for Fed rate cuts, while a softer-than-expected figure can be interpreted as a sign of easing inflation and strengthen expectations for rate cuts. Risk assets generally tend to rise when expectations grow for greater liquidity tied to lower interest rates.