Sources gave differing accounts of the Personal Consumption Expenditures (PCE) price index for August, the inflation measure the Federal Reserve watches most closely. The Associated Press and The Hill reported that inflation cooled or dipped, with The Hill citing a year-over-year rate of 3.4 percent, up 0.3 percent from July. The Epoch Times and ABC News (Australia), however, reported headline inflation jumped to 4 percent in August, up from 3.5 percent in July.
MarketWatch and Fox Business both described inflation as remaining elevated, with MarketWatch saying the gauge rose sharply and Fox Business noting the level remained well above the Federal Reserve's 2% target. The New York Times said the index showed little sign of easing.
Multiple outlets linked the data to the Federal Reserve's recent actions on interest rates. MarketWatch noted the reading came after the central bank raised interest rates earlier in the month for the first time in three years, while The Hill reported that several central bank officials have suggested future rate hikes could be on the horizon.
The discrepancy between the figures reported by different outlets — some citing roughly 3.4 percent and others citing 4 percent — was not reconciled across the supplied material.
How each side covered it
Left
- The Associated Press reported inflation cooled slightly even as consumer spending increased.
- The New York Times reported the PCE index showed little sign of easing in August.
- ABC News (Australia) reported headline inflation jumped to 4 percent in August, up from 3.5 percent in July.
“Inflation cooled slightly last month even as consumers stepped up spending” — Associated Press
Center
- The Hill reported the PCE index rose 0.3 percent month-over-month and 3.4 percent year-over-year.
- The Hill noted central bank officials have said future interest rate hikes could be on the horizon.
- MarketWatch reported inflation rose sharply, keeping pressure on the Federal Reserve.
- MarketWatch linked the data to the Federal Reserve's recent interest rate hike, the first in three years.
“U.S. inflation rises again and keeps the pressure on Fed” — MarketWatch
Right
- Fox Business reported PCE inflation cooled but remained well above the Federal Reserve's 2% target.
- The Epoch Times reported headline inflation jumped back to 4 percent.
“Headline Inflation Jumps Back to 4 Percent” — The Epoch Times
Questions readers ask
What happened with August inflation data?
Outlets gave conflicting reports on the Personal Consumption Expenditures price index for August: some, like The Hill, described a dip to 3.4 percent year-over-year, while others, including ABC News (Australia) and The Epoch Times, reported a jump to 4 percent.
Why does the PCE inflation gauge matter?
The PCE price index is the Federal Reserve's preferred measure of inflation and factors into its decisions on interest rates, according to multiple outlets including The Hill and MarketWatch.
What did left-leaning and right-leaning outlets focus on?
Left-leaning outlets were split, with the Associated Press citing cooling inflation and ABC News (Australia) reporting a jump to 4 percent; right-leaning outlets, including Fox Business and The Epoch Times, emphasized that inflation remained elevated or had jumped.
How does this relate to the Federal Reserve's interest rate decisions?
MarketWatch reported the inflation reading came after the Federal Reserve raised interest rates earlier in the month for the first time in three years, while The Hill noted officials have signaled future hikes could follow.
Sources · 13 outlet reports
- ABC News (Australia)Left-leaningBreaking: Headline inflation jumped to 4 per cent in August, up from 3.5 per cent in July
- Associated PressLeft-leaningInflation cooled slightly last month even as consumers stepped up spending
- The New York TimesLeft-leaningFed’s Preferred Inflation Gauge Points to Continued Price Pressures
- CNBCCenterFed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected
- MarketWatchCenterAustralia's Consumer Inflation Gained Pace in August -- Update
- ReutersCenterUS inflation rises less than expected in August; consumer spending surges
- The HillCenterFed’s preferred measure of inflation dips to 3.4 percent in August
- BreitbartRight-leaningFed’s Preferred Inflation Measure Comes in Much Lower Than Expected
- Fox BusinessRight-leaningFed's favored inflation gauge cooled in August but remained elevated
- Just the NewsRight-leaningKey inflation gauge shows consumer prices increased 0.3% from July to August, less than expected
- NewsmaxRight-leaningPCE Inflation Cools to 3.4% in August
- The Epoch TimesRight-leaningHeadline Inflation Jumps Back to 4 Percent
- The Washington TimesRight-leaningKey inflation reading comes in cooler than expected, easing pressure on Fed and Trump