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United States inflation increased less than anticipated in August as price pressures moderated from prior months, according to Commerce Department data released on Wednesday. The Personal Consumption Expenditures price index rose zero point three percent following a downwardly revised zero point one percent gain in July. Economists previously forecast a zero point four percent increase. Over the twelve months through August, PCE inflation advanced three point four percent. The report indicated consumer spending surged last month despite economic headwinds from energy price increases tied to the conflict involving Israel and Iran. Financial markets reduced expectations for policy tightening by the Federal Reserve at its upcoming October meeting. However, analysts noted that resilient consumer demand and reaccelerating monthly readings mean another interest rate hike before the end of the year remains possible as the central bank pursues its two percent inflation target.