July data shows core PCE inflation met expectations, while headline PCE accelerated slightly, reinforcing Fed policy uncertainty.
The US Core PCE Price Index rose 0.2% month-over-month in July, matching consensus forecasts and the prior month’s revised print. Year-over-year, core inflation held at 3.3%, in line with expectations and unchanged from June.
Headline PCE inflation accelerated, though specific figures were not detailed in the release. The data aligns with recent trends, suggesting persistent price pressures despite cooling in some sectors. Markets had anticipated the core reading, which excludes volatile food and energy costs.
The report adds to the Federal Reserve’s data-dependent stance ahead of its next policy meeting, with no immediate market reaction noted.