July’s core PCE inflation reading aligns with expectations, signaling persistent price pressures amid Fed policy deliberations.
US core Personal Consumption Expenditures (PCE) inflation held steady at 3.3% year-over-year in July, matching market forecasts. The Bureau of Economic Analysis reported the figure, which excludes volatile food and energy prices, remained unchanged from June’s revised print.
The overall PCE inflation rate rose to 3.7%, slightly above the consensus estimate of 3.6%. June’s annual inflation was revised upward to 3.4% from 3.3%. The data reflects ongoing inflationary pressures despite aggressive Fed rate hikes.
Markets showed muted reaction as the report reinforced expectations for a prolonged restrictive monetary policy stance.