WASHINGTON — The Federal Reserve's favored inflation gauge accelerated slightly in August from a year earlier.

The Commerce Department reported Friday that its personal consumption expenditures price index was up 2.7% in August from a year earlier, up from a 2.6% year-over-year increase in July and the most since February. Excluding volatile food and energy prices, core PCE inflation showed a 2.9% increase in prices from August 2024, the same as in July.

Prices rose 0.3% from July, compared to a 0.2% increase the prior month. Core prices rose 0.2%, the same as in July. Inflation-adjusted consumer spending rose a healthy 0.4% from July, the same as the prior month.

Incomes rose 0.4%, the same as the prior month. Income for the self-employed and business owners rose 0.9% for a second stra

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