The U.S. is set to release the July Personal Consumption Expenditures (PCE) inflation data, the Federal Reserve's preferred measure of inflation, on August 29, 2025. Economists forecast the headline year-over-year PCE inflation rate to remain steady at 2.6%, the same as the previous month. Market watchers emphasize the importance of this report for the Federal Reserve's monetary policy decisions, particularly regarding potential interest rate cuts. A rise in inflation could compel the Fed to maintain or raise rates, while a steady or lower reading might strengthen arguments for easing. The PCE data follows a positive GDP reading, adding complexity to the Fed's decision-making. Real-time inflation estimates from sources like Truflation suggest a current PCE rate of approximately 2.71%, slightly above the forecast, highlighting the dynamic nature of inflation tracking. Wall Street closed strongly ahead of the report, reflecting investor anticipation.
US PCE: 2.71% Tomorrow, the BEA will release the July PCE. At @truflation, you have access to real-time data. Use economic data from today, not from a month ago. https://t.co/gqlgFUm0JZ
Strong finish for Wall Street today, all eyes on PCE inflation tomorrow https://t.co/qzFahG5QjB
Yes. We still have growth. This is the Fed's dilemma. Cut or not? We'll get the PCE report tomorrow morning. If inflation ticks up again, may not have any choice in September. https://t.co/EiywRlUAL1