US Core Inflation Cools to 3% in August, Spending Stays Strong

US core PCE inflation rose 0.2% month-on-month in August, below the 0.3% forecast, bringing the annual rate to 3% versus 3.3% expected. Consumer spending increased 0.9%, while income growth slowed to 0.2%. The data eased Fed rate hike bets, with October odds falling to 9 basis points.