Inflation hits 30-year high in key gauge watched by Fed

Inflation hit the highest rate in 30 years in the gauge favored by the Federal Reserve, further fueling inflationary fears.

The core personal consumption expenditures price index increased by 4.3% on an annual basis and 0.4% for the month of August, according to data released by the Bureau of Economic Analysis on Friday morning.

Core PCE inflation, which strips out energy and food prices, rose at a 3.6% annual rate.