Breaking: US PCE Inflation Holds Steady at 2.5% in July, Below Market Expectations
The latest data from the U.S. government revealed that the Personal Consumption Expenditures (PCE) inflation rate remained unchanged at 2.5% in July, consistent with the previous month’s figure but slightly below market forecasts. This data release, closely monitored by the global financial markets, is expected to play a crucial role in influencing the Federal Reserve’s upcoming decisions on potential rate cuts, as the PCE is the central bank’s preferred measure of inflation.
According to a report from the Commerce Department, the PCE index rose by 0.2% in July, up from the 0.1% increase recorded in June. On an annual basis, the inflation rate was reported at 2.5%, narrowly missing the Wall Street consensus of 2.6%, which sparked optimism among investors.
Meanwhile, the Core PCE index, which excludes volatile food and energy prices, also saw a 0.2% increase, mirroring the growth seen in June. Annually, Core PCE inflation remained steady at 2.6%, unchanged from the previous month, but slightly below the market’s expectation of 2.7%.
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