As we calculated based on the earlier price data releases, the core PCE deflator increased by a muted 0.13% m/m in August, with the headline deflator up by 0.09% m/m. Admittedly, although the monthly gain in core prices equates to only 1.6% on a 1m annualised basis, the 3m annualised inflation rate edged back up to 2.1%, with unfavourable base effects pushing the annual rate back to 2.7% (2.678%) up from 2.6% (2.649%).
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