PCE Price Index Surpasses Expectations, Inflation Concerns Persist

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, rose 0.2% in July and was up 3.7% year over year.

This increase surpassed economists' expectations by 0.1%, with both numbers coming in above forecasted levels.

The core PCE, which excludes volatile food and energy prices, also saw a 0.2% rise during the month, matching estimates at 3.3% higher year over year.

As the Federal Reserve weighs its next move on interest rates, this data will be another consideration in their deliberations.