August's Personal Consumption Expenditures (PCE) data —the Federal Reserve's preferred measure of inflation— came in line with economist expectations Friday morning. The headline PCE figure showed a modest month-over-month increase of 0.1%, while rising by 2.2% year-over-year. Core PCE, which excludes volatile food and energy costs, increased by 2.7% compared to the same period last year.

Yahoo Finance Fed reporter Jennifer Schonberger breaks down the details of the report, discussing how it will influence Fed policy moving forward.

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This post was written by Angel Smith