A bit more on that high inflation rate seen in August PCE.

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Few days ago we discussed the Personal Consumption Expenditure for August 2021 shows ongoing inflation.

The August number of 0.4% increase results in a year-over-year increase of 4.3%. Bad news is this is the highest increase in PCE since 1991, all the way back when Pres. Bush was in office.  That is a 30-year high in the inflation rate as measured by PCE.

MarketWatch pointed this out in their 10/1/21 article: US inflation rises sharply again in August and stays at 30-year high.

Article also points out the official position of the Federal Reserve previously was inflation would moderate and drop back down to the 2% target by the end of the year.

Recent comments indicates they think inflation is going to be running at a high level until well into next year. Reason cited is continuing shortages in the supply chain and shortages of labor.

So, 30-year high and the kind inflation will continue into next year.

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