**PCE Inflation Rises in August**
New data shows that the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, rose in August. Core PCE, which strips out volatile food and energy prices, increased 0.1% from the prior month and 3.9% over the past year. This marks a continued slowing in inflation’s pace, even as overall prices rise. The figures align with economist expectations, reinforcing belief that the Fed may not need to raise rates further in the near term.
Despite the progress, inflation remains above the Fed’s 2% target, and policymakers are closely monitoring wage and spending trends. Uncertainty around energy prices and the resilience of consumer activity could still influence future monetary policy. Investors are watching these signals to gauge the direction of rates and the broader economy.
**Implications for Arizona Real Estate Investors**
For Arizona real estate investors, trends in inflation and Federal Reserve policy play a crucial role in shaping borrowing costs and market demand. Slowing inflation could stabilize or even reduce mortgage rates over time, making real estate investments more attractive. However, persistent uncertainty and elevated rates may continue to impact affordability and investment strategy. Monitoring inflation reports helps Arizona investors anticipate shifts in financing costs and property values.
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