The Fed’s preferred inflation gauge will show whether price pressures eased further in July after June’s elevated readings.
The US Bureau of Economic Analysis will release July personal consumption expenditures (PCE) inflation data this afternoon. The Fed’s preferred inflation measure stood at 3.7% year-over-year in June, well above the central bank’s 2% target. Core PCE, which excludes food and energy, was 3.3% in June, also remaining elevated.
June’s figures marked a slight cooling from prior months but still reflected persistent inflationary pressures. Economists expect July’s data to provide further insight into whether the Fed’s rate hikes are slowing price growth. The release comes ahead of the Fed’s next policy meeting in September.
Markets will scrutinize the report for signs of disinflation, which could influence the Fed’s rate decision trajectory.