PiCK
US July PCE Inflation Rises 3.7% From Year Earlier, Slightly Above Forecast
Summary
- The Commerce Department's Bureau of Economic Analysis said the July PCE index rose 3.7% from a year earlier, 0.1 percentage point above the market forecast of 3.6%.
- The July PCE index also increased 0.2% from the previous month, 0.1 percentage point above the forecast of 0.1%.
- The core PCE index, which excludes food and energy, rose 3.3% from a year earlier, matching economists' forecast of 3.3%, and is a key gauge the Federal Reserve (Fed) uses when setting interest rates.
Forecast Trend Report by Period
The US personal consumption expenditures price index rose slightly more than expected in July, while core inflation matched forecasts.
The Commerce Department's Bureau of Economic Analysis said Aug. 26 that the headline PCE price index increased 3.7% from a year earlier, topping the market forecast of 3.6% by 0.1 percentage point.
From the previous month, the index rose 0.2%, compared with expectations for a 0.1% increase.
The core PCE price index, which excludes food and energy, climbed 3.3% from a year earlier, in line with economists' forecast.
On a monthly basis, the core index also rose 0.2%, matching market expectations.
The core PCE index measures the prices US residents pay for goods and services excluding food and energy. It is a key inflation gauge the Federal Reserve watches when considering policy decisions, including its benchmark interest rate.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul