US Inflation Measure Holds Steady in July
The Personal Consumption Expenditures (PCE) price index stayed the same in July. This index is the Federal Reserve's main tool for tracking inflation.
The Bureau of Economic Analysis released the report today. Economists surveyed by Dow Jones had expected the index to rise.
A related measure called core PCE inflation increased 3.3% over the year. Core PCE excludes food and energy prices.
Economists had expected core PCE to rise 3.6% annually. They also expected the main PCE index to rise 0.1% monthly.
The report showed personal income rose 0.4% in July. Consumer spending increased 0.2% during the same month.
Klear Note — PCE tracks prices paid by households, helping measure changes in living costs.
Key Terms 5
- PCE price index A measure of prices people pay for goods and services.
- Federal Reserve The US central bank that manages interest rates and inflation.
- Bureau of Economic Analysis A US government agency that tracks economic data.
- Dow Jones A financial news company that surveys economists for forecasts.
- Core PCE Inflation measure excluding volatile food and energy prices.