July PCE inflation index held at 3.7% annual pace, hotter than expected
Summary
The Personal Consumption Expenditures (PCE) index, which measures inflation for U.S. consumers, stayed at a 3.7% annual rate in July. This was slightly higher than experts expected and showed that prices for goods and services did not go down from June.Key Facts
- The PCE index grew at a 3.7% yearly rate in July.
- Economists had predicted a 3.6% increase, so the actual number was a bit higher.
- Inflation in July stayed the same as it was in June.
- The PCE index shows the price changes for things U.S. households buy.
- The Federal Reserve watches this index closely to decide on interest rates.
- Inflation being steady suggests ongoing pressure on consumer prices.
- The Federal Reserve uses this data to guide economic policies.
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