U.S. Fed's inflation measure surges 6.2 pct in August despite rising rates

WASHINGTON, Sept. 30 (Xinhua) -- U.S. personal consumption expenditures (PCE) price indexes, the Federal Reserve's preferred inflation measure, soared 6.2 percent in August over the past year amid the Fed's massive rate hikes, the Commerce Department reported on Friday.

The latest figure released by the department's Bureau of Economic Analysis came after the measure in June and July surged 7.0 percent and 6.4 percent year-on-year respectively, the latest sign that inflation might have started to cool off.

PCE prices rose 0.3 percent in August from the previous month, after falling by 0.1 percent in July from June, indicating continued price pressure.

The so-called core PCE price index, which strips out volatile food and energy prices, rose 4.9 percent in August from a year ago, up from 4.7 percent in July, still well above the Fed's inflation target of 2 percent.

Since March, the Fed has lifted interest rates five times, including three consecutive 75-basis-point rate hikes in June, July and September, boosting the Fed's benchmark interest rate to a range of 3 percent to 3.25 percent.

"The FOMC (Federal Open Market Committee) is resolved to bring inflation down and we will keep at it until the job is done," Fed Chair Jerome Powell said at a press conference last week.

Powell said the Fed will be looking for "compelling evidence" that inflation is moving down. "At some point as the stance of policy tightens, it will be appropriate to slow the pace of increases while we assess how our policy adjustments affect the economy," he added.