Core PCE Stuck Above Target as US Inflation Remains Sticky

The US Federal Reserve's preferred inflation measure, Core PCE, remains above its 2% target at +3.3% year-on-year.

This is unchanged from the previous update and has been stuck above the target for over five years.

Core CPI came in at +2.5%, which may be seen as a relief compared to Core PCE, but still shows inflationary pressures persisting.

The Producer Price Index (PPI), which measures wholesale inflation, was up at +4.2% in July, indicating rising costs for producers that could be passed on to consumers or absorbed by companies, impacting profitability and stock prices.