US Inflation Ticks Higher Despite Softer Monthly Prints
US inflation showed a modest increase in July, according to the Federal Reserve's preferred gauge. The Bureau of Economic Analysis' personal consumption expenditures price index rose 0.2% on the month and 3.7% year-on-year, both slightly above consensus.
The core PCE, which strips out volatile food and energy costs, also increased 0.2% monthly and 3.3% annually, matching forecasts. This reading comes as policymakers weigh their next move, with inflation still running above the central bank's 2% target despite softer monthly prints over the summer.
July's report showed personal income up 0.4% and spending rising 0.2%, both stronger than expected. Goods prices fell 0.1%, driven by a 2.7% drop in gasoline and other energy goods, while services prices climbed 0.3% due to a 1.2% rise in financial services and insurance.