Key Inflation Gauge Jumps, Investors Ramp Up Bets for a More Aggressive Fed

A shopping cart is seen in a supermarket as inflation affected consumer prices in New York City, on June 10, 2022. Andrew Kelly/Reuters

U.S. inflation rates rose higher than expected in August, as investors expect a more aggressive monetary policy by the Federal Reserve in its efforts to curtail inflation toward the central bank’s preferred target of 2 percent.

The keenly watched Personal Consumption Expenditures price index (PCE) was published by the Bureau of Economic Analysis on Sept. 30.