July PCE Report: Inflation Index Up 2.6%, in Line with Expectations

The July Personal Consumption Expenditures Price Index increased in line with expectations, up 2.6% from year-ago levels. When volatile food and energy costs are factored out, the Federal Reserve’s preferred measure of inflation increased 2.9% from one year ago, in line with expectations.

The PCE Price Index increased 0.2% from month-ago levels. Excluding food and energy, the index increased 0.27%.

July PCE Inflation Report Highlights

• The PCE Price Index rose 0.20% in July, in line with the FactSet consensus forecast and following an increase of 0.28% in June.
• Core PCE rose 0.27% in July, below forecasts for a 0.30% increase and following an increase of 0.26% in June.
• The PCE Price Index year over year rose 2.6% in July, in line with forecasts and following an increase of the same amount in June.
• Core PCE year over year rose 2.9% in July, in line with forecasts and following an increase of 2.8% in June.

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