The US: PCE Inflation_July 2023

The United States:  July  PCE Inflation

Sign of Persistently-Cooling  Labor Market

Headline PCE at +0.2% from the Preceding Month

The United States of America (US) central bank the Federal Reserve’s (the Fed) preferred inflation measure, the Personal Consumption Expenditures (PCE) Price Index for July this year came in at an annual headline rate of 3.3% (June: 3.0%) (in Chart 1). On a monthly basis, PCE inflation in July came in at +0.2% (June: 0.2%). Core PCE inflation for July was recorded at an annual and monthly rate of 4.2% (June:4.1%) and 0.2% (June: 0.2%), respectively (Chart 2&3). The trend of PCE inflation is declining as expected by the US central bank, nevertheless is still higher than the targeted 2% annual rate.

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