Among the PCE price index components, year over year, the nondurable goods subindex was up 0.8 percent in August, down from July’s 1.5 percent pace, yet above the 12-month average of 0.4 percent. The durable goods subindex was down 2.2 percent year over year in August, an acceleration from July’s decline of 2.4 percent yet consistent with the long-term deflationary trend in the durable goods market. The services subindex rose 2.3 percent year over year, unchanged from July. Services, which account for nearly two-thirds of personal expenditures, have experienced relatively stable inflation of around 2 percent since 2010, down from a little over 3 percent before the recession.
