Data released just moments ago from the U.S. Bureau of Economic Analysis showed that U.S. personal income rose 0.4% to $112.34 billion in July, compared to a 0.3% increase in June. The Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation measure, rose 0.5% to $108.9 billion, compared to a 0.3% increase in June. The PCE rose 2.6% year-over-year, matching the June reading and matching expectations.
The core CPI, which excludes food and energy prices and is closely monitored by the Federal Reserve, grew 0.3% in April, the same as June’s reading, and rose to 2.9% year-over-year, compared to 2.8% in June, matching expectations.