US Inflation Holds Steady at 3.7% Amid Rising Consumer Spending

The latest U.S. inflation data shows that PCE inflation remained steady at 3.7% year-over-year in July, while consumer spending continued to rise.

According to new government data released on August 26, the Federal Reserve's preferred PCE inflation gauge increased 0.2% from June and matched expectations for a monthly increase of 0.2%. The core PCE inflation rate also rose 3.3% year-over-year and 0.2% month-over-month.

Personal income increased by 0.4%, exceeding the estimated 0.2% rise, while personal spending rose 0.2% in July, matching expectations for a 0.1% increase.