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August core PCE inflation shows modest improvement but Fed rate hike in October remains uncertain.

Market News
30 Sep 2026
Seeking Alpha
View Source
Neutral
August core PCE inflation shows modest improvement but Fed rate hike in October remains uncertain.

August's core Personal Consumption Expenditures (PCE) inflation rate came in at 3.0% year-over-year, but much of this apparent improvement is due to historical data revisions rather than new disinflation trends. Short-term trends show core PCE inflation running near 2.1% annualized over three months and 2.7% over six months. Consumer spending remains strong despite slower income growth, supported by wealth concentration. While this reduces the urgency for a Federal Reserve rate hike in October, ongoing strong economic growth, persistent services inflation, and high long-term Treasury yields suggest the Fed's tightening cycle is not yet over.

The PCE inflation revision and disinflation topic is presented here with Pluang's market data for context. For readers following US stocks, as of Sep 30, 2026 21:31 WIB, 80 out of 150 priced stocks rose while 70 fell. Notable movers include Airbnb at USD 161.27 (+2.75%), Apple at USD 338.29 (+2.70%), and Royal Caribbean Cruises at USD 267.54 (+2.64%).

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