US prices rose in August at the slowest pace in three and a half years.
The Commerce Department’s personal consumption expenditures index in August rose 2.2 percent from a year earlier, and 0.1 percent on the previous month.
The PCE is a key figure the Federal Reserve uses to assess domestic inflation.
Policymakers at the Fed decided earlier this month to lower the benchmark interest rate by half a percentage point. It was the first such cut in four and a half years.