US August Core PCE Matches Expectations at +3.9% YoY

US August core PCE (Personal Consumption Expenditures) inflation came in at +3.9% year-on-year, in line with expectations, while core PCE month-on-month inflation was slightly lower than expected at +0.1%. Headline inflation, as measured by the PCE, was +3.5% year-on-year. The lower-than-expected inflation numbers may alleviate pressure on bonds and weigh on the US dollar. Consumer spending and income for August were in line with estimates, with personal spending and income both increasing by +0.4%. Overall, there is some modest selling of the USD.