US Inflation Rate Holds Steady at 2.5% in July

The US inflation rate, as measured by the Personal Consumption Expenditures (PCE) price index, remained stable at 2.5% in July. This comes as the Federal Reserve (Fed) prepares for a potential interest rate cut in September, its first since 2020. The core PCE inflation rate, which excludes volatile food and energy prices, also remained steady at 2.6% year-over-year. This slight slowdown in inflation might prompt the Fed to ease its monetary policy, with a rate cut being considered.