US Inflation Remains Stable: PCE Price Index Stays at 2.5%

The US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) price index rose 2.5% year-over-year in July, remaining unchanged from the previous month. This figure aligns with market forecasts and signifies a continued moderation in inflation. The PCE price index is closely watched by the Federal Reserve as a key indicator of inflation trends. Excluding volatile food and energy prices, the core PCE price index increased 2.6% year-over-year, slightly exceeding market expectations, while climbing 0.2% month-over-month, in line with forecasts.