American households felt a bit more price pressure last month than economists had predicted, throwing a wrench into the Federal Reserve's rate-cut plans for September.
The Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 3.7% year-over-year in July, according to the Bureau of Economic Analysis on Wednesday. That's a tick above the 3.6% consensus.
On a monthly basis, PCE climbed 0.2%, a rebound from June's 0.1% drop and slightly hotter than the 0.1% expected.
Stripping out volatile food and energy costs, core PCE stayed put at 3.3% annually, matching both the prior reading and forecasts. Monthly core inflation also rose 0.2%, in line with expectations but faster than June's 0.1%.
This is a developing story...
