"The August PCE report supports the Fed's decision to go big on September 18, although the core year-over-year at 2.7% suggests that another round of 50 basis points needs to come under careful scrutiny unless the labor market suggests weakness.

Analysis of August's Core PCE Price Index, PCE Price Index, Personal Income, and Personal Outlays data compared to expectations and prior figures.

Inflation continued to inch closer to the Federal Reserve benchmark target Friday, falling to 2.2% year-to-year in August, and beating Wall Street forecasts.