Fed’s preferred gauge shows inflation accelerated even more than expected in August

• • Core inflation rose 4.9% from a year ago in August and 0.6% on a monthly basis, according to a measure the Federal Reserve watches closely.
  • Personal income rose 0.3%, the same as July and in line with the estimate. Spending rose 0.4% after declining 0.2% the month before.
  • Headline inflation, including food and energy, also accelerated, despite a sharp drop in gasoline prices.

Bad news for our great country.