Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected

Consumer prices posted a smaller than expected increase from a year ago, according to the Federal Reserve's primary inflation gauge, the Commerce Department reported Wednesday.The personal consumption expenditures price index increased a seasonally adjusted 0.3% for the month, putting the 12-month gain at 3.4%. Economists surveyed by Dow Jones had been looking for increases of 0.3% and 3.7% respectively.Excluding food and energy, PCE posted a 0.2% increase that put the annual core level at 3%. The respective forecasts were for 0.3% and 3.3%.Though the Fed officially follows the headline PCE number, officials generally consider core a better gauge of longer-term trends.This is breaking news. Please refresh for updates.