Fed’s preferred inflation gauge shows core prices rose 3.3% annually in July
- The Bureau of Economic Analysis reported Wednesday that core personal consumption expenditures inflation remained unchanged at 3.3% in July, matching June's pace and staying above the Federal Reserve's 2% target.
- Inflation has worsened since the Iran war began in late February when it stood at 2.9%, and during the Federal Open Market Committee's July meeting, "many" participants indicated interest rate hikes would "likely be necessary if inflation did not decline."
- Headline PCE rose 3.7% in July, notably above the 2% target, while markets priced in a 72.7% probability of interest rate hikes by December according to CME Group's FedWatch data.
- Some Fed officials remain divided on whether to hold rates steady or raise them to combat inflation, though some view the 0.2% monthly core inflation as a reassuring sign toward the 2% target.
- Federal Reserve Chair Kevin Warsh will deliver a high-profile speech on Friday at the central bank's annual symposium in Jackson Hole, Wyoming, with Wall Street closely watching for signals on future interest rate steps.
49 Articles
49 Articles
US Fed's preferred inflation gauge unchanged in July
The US Federal Reserve's preferred inflation measure remained unchanged in July, with high energy prices caused by US President Donald Trump's Iran war keeping the gauge higher than targeted. The personal consumption expenditures (PCE) price index rose 3.7 percent from a year ago, the Commerce Department said on Wednesday, steady from the month before. The index rose 0.2 percent over last month. Both figures were largely in line with analyst exp…
Feds Report July Inflation Index At 3.7% Annual Rate
CNBC reports: The Personal Consumption Expenditures index — the Federal Reserve’s preferred inflation measure — held at a 3.7% annual pace in July, slightly higher than forecasted and reflecting persistent cost pressures for consumers. Economists polled by FactSet had predicted a 3.6% annual increase. Wednesday’s report instead showed that inflation remained unchanged from June. “The United States still has an inflation problem. PCE inflation ca…
US inflation holds at 3.7% in July, complicating Fed rate debate
U.S. inflation remained unchanged in July, exceeding the Federal Reserve's target. This persistent inflation complicates the central bank's debate on interest rates. Economic growth for the second quarter was also reported unchanged at 1.5%. New tariff pressures are anticipated after trade talks with Canada failed. The Federal Reserve faces a difficult decision regarding monetary policy adjustments.
The U.S. Consumer Expenditure Price Index (CPE), the Federal Reserve's preferred inflation metric (Fed), rose 0.2% in July compared to the previous month, after a fall of 0.1% in June, according to the country's Department of Commerce. The result was slightly above the high consensus of 0.1% of a group of market analysts. In relation to the same period in the previous year, the PCE rose 3.7% in July, after an advance of the same magnitude in Jun…
Core Inflation Holds At 3.3% In July
The U.S. inflation remained above the Federal Reserve’s target in July, with the central bank’s preferred gauge showing continued price pressures. According to the Commerce Department, the personal consumption expenditures price index increased 0.2% from June and rose 3.7% over the year. Both readings were slightly above expectations. Core PCE, which excludes volatile food and energy prices, also increased 0.2% monthly and 3.3% annually, matchin…
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