Inflation Gauge Rises in Line With Expectations, but Remains Lower Than Fed Target

The personal consumption expenditures index (PCE), the Federal Reserve’s preferred gauge for inflation, increased by 0.2% in July, according to data released by the Commerce Department. This rise was in line with analysts’ expectations. While the PCE index showed a slight increase, it remained below the Federal Reserve’s year-to-year benchmark, rising 2.5% from the same period last year.