US inflation edges higher in July as PCE tops forecasts.
US inflation ticked slightly higher in July, according to the Federal Reserve's preferred gauge, with both headline and core readings showing modest monthly increases.
Source: Sharecast
The Bureau of Economic Analysis' personal consumption expenditures price index rose 0.2% on the month and 3.7% year‑on‑year in July, both a touch above consensus, while core PCE, which strips out volatile food and energy costs, also increased 0.2% on the month and 3.3% annually, matching forecasts.
July's report showed personal income up 0.4% and spending rising 0.2%, both stronger than expected.
Goods prices fell 0.1%, driven by a 2.7% drop in gasoline and other energy goods and a 0.9% decline in household furnishings and durable equipment. Services prices, on the other hand, climbed 0.3%, led by a 1.2% rise in financial services and insurance and a 0.3% increase in housing.
July's reading comes as policymakers weigh their next move, with inflation still running above the central bank's 2% target despite softer monthly prints over the summer.
Reporting by Iain Gilbert at Sharecast.com
Compare our accounts
If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
