Inflation measure closely watched by the Fed rises 2.5% in July

Published On Aug 30, 2024, 4:33 AM

In July, the personal consumption expenditures (PCE) price index, an inflation measure significant to the Federal Reserve, rose by 2.5% year-over-year and 0.2% from the previous month. The core PCE, excluding food and energy, similarly increased by 2.6% year-over-year. Rising consumer spending suggests resilience in the economy despite inflation and high interest rates, while indications show the Fed may begin to lower interest rates soon, potentially in response to cooling inflation.