U.S. inflation rises less than expected in August, reducing odds of October rate hike

In the United States, the Commerce Department reported that the Personal Consumption Expenditures price index rose 0.3 percent in August, less than the 0.4 percent economists expected. Core PCE inflation, excluding food and energy, increased 0.2 percent, also below forecasts. Annual PCE inflation stood at 3.4 percent, unchanged from July. Consumer spending jumped 0.9 percent, while personal income rose 0.2 percent. The softer inflation data reduced market expectations for a Federal Reserve rate hike in October, but strong spending suggests the economy remains resilient.