US Core Inflation Holds Steady Above Fed Target

The US Personal Consumption Expenditures (PCE) price index rose 0.2% month-on-month in July, meeting market expectations.

The core PCE price index, which excludes food and energy prices, increased by the same margin as headline PCE, but remained at a year-over-year growth rate of 3.3%, well above the Federal Reserve's 2% inflation target.

Although goods prices fell 0.1% month-on-month in July, services prices rose 0.3%, driven by continued upward movement in categories such as financial services, insurance, and housing.