The U.S. Commerce Department said its Personal Consumption Expenditures (PCE) price index rose 0.2% in July, keeping the annual headline rate at 2.6% and broadly in line with economists’ projections. Excluding food and energy, the core PCE price index—closely watched by the Federal Reserve—advanced 0.3% on the month and 2.9% from a year earlier, the steepest yearly reading since February but exactly matching consensus forecasts. July marked the third consecutive monthly increase in the core gauge. Household demand remained firm: nominal personal consumption expenditures increased 0.5%, while real spending adjusted for inflation rose 0.3%. Personal income gained 0.4% following a 0.3% rise in June, and the personal savings rate held at 4.4%. Although inflation continues to moderate from its 2024 highs, both headline and core readings remain above the Fed’s 2% objective. The figures come less than three weeks before policymakers meet in September, a gathering at which investors expect another interest-rate cut.
PCE, the Federal Reserve’s preferred inflation metric, was released this morning • PCE: 2.6% YoY vs. 2.6% est. • PCE: 0.2% MoM vs. 0.2% est. • Core PCE: 2.9% YoY vs. 2.9% est. • Core PCE: 0.3% MoM vs. 0.3% est. https://t.co/cruzP7Qccr
Fed's favored inflation gauge shows consumer price pressures remained elevated in July https://t.co/qJsNwYD5zx
El índice preferido por la Fed para medir la inflación se mantuvo en julio en el 2,6% https://t.co/5jD3Kw2anL