The Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index, stays flat in July, according to data released by the Bureau of Economic Analysis. The index rises 0.2% for the month and is up 3.7% year over year.
The articles also note the “core” PCE measure, which excludes food and energy prices. Core inflation increases to 3.3% on a 12-month basis. CNBC reports that expectations from economists surveyed by Dow Jones were for the overall PCE index to rise 0.1% monthly and 3.6% over the year, placing the actual results slightly higher than forecasts on both the monthly and annual measures.
Overall, both outlets describe the July data as keeping the Fed’s main inflation gauge near its prior level, while core inflation remains elevated but excludes volatile components that can swing month to month.
