Inflation is still too high, July data shows
The Federal Reserve may soon consider raising interest rates after new data showed inflation didn't change from June and is higher than expected. CBS News contributor J.D. Durkin has more information.
The US inflation rate, as measured by the personal consumption expenditures (PCE) price index, remained unchanged in July. According to the Commerce Department, the PCE price index rose 3.7 percent from a year ago, steady from the previous month, and increased 0.2 percent over the last month.
The inflation rate is higher than the Federal Reserve's target of 2 percent, and it has been above this target for over five years. Energy prices have contributed to the high inflation rate due to the ongoing conflict in the Middle East, as reported by RTHK News - Finance.
The Federal Reserve's preferred gauge of inflation, the PCE price index, rose 0.2 percent month-on-month in July, and 3.3 percent year-on-year, excluding energy and food, according to Investing.com. The inflation data may influence the Federal Reserve's decision on interest rates at its next meeting in September.
Brief written by urgent.news from CBS News, RTHK News - Finance, Investing.com — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- Fed’s preferred inflation index matches prior month on annualized basis in July investing.com
- July PCE inflation index held at 3.7% annual pace, hotter than expected cbsnews.com
- US Fed's preferred inflation gauge unchanged in July news.rthk.hk
- Fed’s preferred inflation gauge remains flat at 3.7 percent in July thehill.com
- Fed’s preferred inflation gauge shows core prices rose 3.3% annually in July cnbc.com
- The Fed's favorite inflation gauge posted a slight upside surprise in July qz.com
- Core PCE inflation rises as expected in July, headline PCE accelerates seekingalpha.com
