US: Annual Core PCE Price Index edges higher to 1.3% in July

Annual core PCE Price Index in US came in higher than expected in July.
US Dollar Index stays deep in the negative territory.

Eren Sengezer FXStreet

The Personal Consumption Expenditures (PCE) Price Index in July rose 0.3% on a monthly basis, the US Bureau of Economic Analysis reported on Friday. On a yearly basis, the PCE Price Index came in at 1% and missed the market expectation of 1.2%.

More importantly, the core PCE Price Index, the Federal Reserve's preferred gauge of inflation, increased from 1.1% in June to 1.3% in July and came in higher than analysts' estimate of 1.2%. On a monthly basis, the core PCE Price Index matched June's reading of 0.3%.

Market reaction

The US Dollar Index, which slumped to a 10-day low of 92.20 earlier in the day, recovered modestly in the last minutes and is currently down 0.66% on the day at 92.38.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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