Signs of recovery inflation appear on USAwith the PCE index running at a rate of 2.7% annually in August, according to a statement issued today (26.9.2025) US Department of Commerce.
The PCE index measures the consumer costs of US households. Its increase is used by the US Federal Bank (FED) as the preferred inflation. Private consumption is considered the driving force of the US economy.
Structural inflation, which excludes unstable energy and food prices, was 2.9% in August compared to the same month last year. Thus, structural inflation remained stagnant between July and August. The total index, however, was slightly lower at 2.6% in July.
State bonds rose after reading inflation, as expected, leaving the Federal Bank on the track to continue interest rates next month.
The profits have pushed down the two -year bond yields – which are more followed by expectations for changes in monetary policy – by one base unit to 3.65%. The interest rate on 10 -year reporting bonds was 4.16%.
“These numbers seem to me to be in line with what the markets were expecting,” said James Bullard, former president of St. Louis Fed, at Bloomberg Television. “This leaves everything in orbit for further interest rates in the next two FOMC meetings.”
The interest rates swaps have shown that traders discount 20 -point reductions at the Fed meeting in October and a total of 38 basis points by the end of the year, unchanged compared to before the publication of the data. Policy -executives reduced interest rates by a quarter of the unit to a range of 4% – 4.25% at the September meeting.