US EditionJuly PCE: Core Inflation Rose to 2.9%, Highest Since February
Core Personal Consumption Expenditures inflation rose to 2.9% in July, the highest since February, maintaining pressure above the Federal Reserve's 2% target, influencing rate cut expectations.
- On Friday, the U.S. Bureau of Economic Analysis reported the Personal Consumption Expenditures Price Index rose 2.6% year-over-year in July, remaining stable.
- The Federal Reserve monitors the PCE because it is the Fed's preferred inflation gauge, with core PCE rising to 2.9% in July, keeping inflation above the Fed's 2% target.
- Household accounts reveal personal consumption expenditures rose $108.9 billion, personal income increased $112.3 billion, while Americans' savings declined to $985.6 billion with a 4.4% saving rate in July.
- In trading after the release, the U.S. dollar index rose 0.15% to 98.05, 10‑year Treasury yield increased 3 basis points to 4.23%, and S&P 500 futures moved modestly lower Friday morning.
- Markets now expect a 25 bps September cut, but policymakers caution that it is unclear how many rate cuts may occur this year while Fed Chair Jerome Powell signals rising downside labor market risks.
22 Articles
22 Articles
U.S. core inflation rises 2.9 pct in July
NEW YORK, Aug. 29 (Xinhua) -- U.S. core inflation, measured by the core personal consumption expenditures (PCE) price index excluding food and energy, rose 2.9 percent year-over-year in July, the highest level since February, the Bureau of Economic Analysis (BEA) reported Friday. Read full story
Sticky inflation, Fed drama and the rise of 'cute' debt
Core inflation rose to 2.9% in July, according to the latest PCE data — the Fed's preferred inflation gauge — marking its highest level in months. But despite stubborn inflation and falling consumer confidence, consumer spending continues to climb. Courtenay Brown at Axios and Jordyn Holman at The New York Times join "Marketplace" host Amy Scott to talk about the latest inflation numbers, and the court battle brewing between the White House and …
The Fed's favorite inflation gauge just came in mostly cool, but hot under the surface again
The Federal Reserve’s preferred inflation gauge mostly held steady last month despite President Donald Trump’s broad-based tariffs, but a measure of underlying inflation increased. Prices rose 2.6% in July compared with a year ago, the Commerce Department said Friday, the same annual increase as in June. Excluding the volatile food and energy categories, prices rose 2.9% from a year earlier, up from 2.8% in the previous month and the highest sin…
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