The preferred inflation indicator of the Federal Reserve is still above target, and consumer spending remains strong.

Data released on Friday in the United States showed that the inflation index preferred by the Federal Reserve was still above target last month, posing a challenge to the Fed's decisions in the face of a weakening labor market. The data showed that consumer prices rose by 0.3% in August, bringing the PCE inflation rate to 2.7% over the past year, higher than the previous month's 2.6%, with the core index remaining at 2.9%. These figures did not come as a surprise to economists, who can accurately estimate PCE inflation by inputting other official price data into the formula. However, the data indicate that, after the Fed's first rate cut of the year to ease the weakness in the labor market, the Fed still needs to monitor high inflation pressures. The report on Friday also showed signs of economic resilience, with consumer spending - a key pillar of the economy - remaining strong in August at a growth rate of 0.6%, higher than July's 0.5%.