Inflation edged higher in July under a measure favored by the central bank as it prepares to cut interest rates for the first time in more than four years.
The U.S. Department of Commerce reported on Friday that the personal consumption expenditures price index rose 0.2% this month, up 2.5% from the same period last year, exactly in line with Dow Jones consensus expectations.
Excluding volatile food and energy prices, core personal consumption expenditures also increased 0.2% this month, but were up 2.6% from the same period last year. The 12-month figure was slightly below expectations of 2.7%.
Fed officials tend to focus more on core data to better gauge long-term trends.
Elsewhere in the report, the department’s Bureau of Economic Analysis said personal income rose 0.3%, slightly above expectations of 0.2%, while consumer spending rose 0.5%, in line with forecasts.
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