August inflation rose to 2.7% year-on-year, according to the PCE index

inflation rose in August, reaching 2.7% year-on-year in the personal consumption expenditures price index (PCE index) released by the government on Friday. That is the highest rate recorded since February.

The PCE rose 0.1 percentage points in August compared with July, reaching 2.6%. The index that the Federal Reserve (Fed) favors for tracking price increases has therefore moved further above its 2% target.

The one-month price increase climbed from 0.2% in July to 0.3% in August, according to AFP. Core inflation—which excludes volatile energy and food prices—remained steady at 2.9% year-over-year, the Commerce Department reported.

Following the latest inflation data, the New York Stock Exchange opened higher, reversing a three-day losing streak.

The report comes just one day after the department revised gross domestic product growth for April through July from 3% to 3.3%, primarily due to higher consumer spending.