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Fed’s Favored Inflation Gauge Matches Expectations: July PCE Price Index Inches Up To 3.3%

Posted August 31, 2023
Piero Cingari
Benzinga

ZINGER KEY POINTS

  • The PCE price index rose from 3% to 3.3% year-on-year in July, matching economists’ projections.
  • Similarly, core PCE inflation matched market estimates, coming in at 4.2% year-on-year in July.

The Federal Reserve’s favored inflation measure, which can encompass a broad array of consumer expenses, experienced a slight increase last month from its lowest levels in over two years.

In July, the year-on-year increase in the Personal Consumption Expenditure (PCE) price index reached 3.3%, surpassing the 3% figure for June and matching economists’ projections of 3.3%, according to data released by the Bureau of Economic Analysis Thursday.

The PCE price index recorded a monthly advancement of 0.2%, matching projections and maintaining the same pace observed in June.

The core PCE price index, which excludes volatile food and energy items and is closely monitored by the Federal Reserve to reveal underlying inflation trends, exhibited a marginal uptick from June’s 4.1% to 4.2% in July, matching economists’ estimates.

Similarly, on a monthly basis, the core PCE price index also saw a 0.2% increase, mirroring June’s rise and aligning with projected outcomes

Originally Posted August 31, 2023 – Fed’s Favored Inflation Gauge Matches Expectations: July PCE Price Index Inches Up To 3.3%

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