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US Core PCE Index for July Expected to Rise 0.3%

The July US Core PCE Price Index shows a 2.9% increase, aligning with market expectations and signaling potential impacts on Federal Reserve policy decisions regarding inflation control.

Summary

The US Core Personal Consumption Expenditures (PCE) price index for July increased by 2.9% year-on-year, slightly up from June's 2.8%. The index rose 0.3% on a monthly basis, consistent with forecasts. This marks the highest inflation level since February 2025.

Terms & Concepts
  • Core PCE Price Index: A key inflation measure tracked by the Federal Reserve that excludes food and energy prices to capture underlying inflation trends.
  • Federal Reserve Rate Cuts: Reductions in the federal funds rate set by the Federal Reserve to stimulate economic activity and manage inflation.
  • Consumer Price Index (CPI): An economic indicator that tracks changes in the prices paid by consumers for goods and services, used to gauge inflation.