US consumer spending was subdued in August as core inflation rose at its slowest rate since 2015.
In line with expectations, consumer spending increased by just 0.1% in August, down from the 0.3% gain in the prior month.
With inflation taken into account, consumer spending actually fell 0.1% in August.
The core PCE price index, the Federal Reserve´s (Fed) preferred inflation measure, fell to an annual rate of 1.3% in August versus July´s 1.4%
While still being well below the Fed´s 2% inflation target, it marks the lowest core PCE rate since 2015.
Core PCE excludes the impact of food and energy prices, so should be more stable than other inflation measures.