PCE Price Index Stays Above 3%, Fueling Rate Hike Speculation

A key inflation gauge used by the Federal Reserve remained elevated in July, showing that many Americans continue to struggle with higher costs.

The Personal Consumption Expenditures (PCE) price index, a closely watched measure of inflation, rose 0.4% from June to July, according to data released on August 30th.

This marks the third straight month that the PCE price index has remained above 3%, indicating persistent pressure on household budgets and consumer spending power.

According to Federal Reserve Governor Randy Quarles, a higher inflation rate could lead to interest rate hikes in an effort to control prices. 'We're going to have to make decisions based on what we see,' he warned.