PCE Inflation Eases to 3.6% in July, Fed Progressing Towards Target

The Federal Reserve's preferred inflation gauge has cooled to 3.6% in July, down from 3.7% in June, indicating continued progress toward bringing price pressures closer to the central bank's 2% target.

This marks a significant decline from May's 4.1%, reflecting a 50-basis-point drop over just three months, according to data released by eciks.org.

The core PCE, which strips out volatile food and energy prices, held steady at 3.3% in June and is expected to remain near that level in July, providing further evidence of the underlying disinflationary trend persisting even amidst volatile energy markets.