US PCE growth slows to 2.2pc in August

Inflation inched closer towards the Federal Reserve's target last month, according to the Commerce Department, paving the way for future interest rate cuts.

The personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, rose 0.1% in August, or 2.2% on an annualised basis, down from a 2.5% print in July and better than the 2.3% reading expected by economists.

Excluding volatile food and energy prices, core PCE rose 0.1% in August and was 2.7% higher year-on-year, just 0.1 percentage point higher than in July.

Elsewhere, personal income increased 0.2% on the month, while spending rose 0.2%

Reporting by Iain Gilbert at Sharecast.com