Prisveksten i USA var 3,7 prosent i juli

In July, inflation in the United States rose by 3.7% year-on-year, according to fresh Personal Consumption Expenditures (PCE) figures, matching the increase from the previous month and exceeding market analysts' expectations of 3.6%. Core inflation, which excludes food and energy prices, remained steady at 3.3%. PCE is one of two primary measures for tracking inflation in the US, the other being the Consumer Price Index (CPI).

The Federal Reserve, the country's central bank, relies predominantly on PCE data. Alongside inflation numbers, a new update on economic growth was released, with the US gross domestic product (GDP) expanding by 1.5% in the second quarter, in line with earlier forecasts and analysts' estimates. The growth rate was slower than in the previous quarter, when the GDP increased by 2.1%.

Inflation could significantly impact future interest rates in the US and the potential for a rate hike. While higher rates are likely at the upcoming Federal Reserve meeting in mid-September, the market had already priced in an increase of around 40% before today's inflation figures. Economists believe today's PCE data may not be the decisive factor, pointing to future Consumer Price Index (CPI) figures for August.

The prevailing sentiment is that inflation in the US "remains too high but is gradually easing," noted Handelsbanken's chief economist Marius Gonsholt Hov in a morning report ahead of the data release. The central bank's target is 2% inflation. "Combined with weaker labor market data and more cautious US households, this has helped temper expectations for a rapid rate hike from the Fed," Hov added.

US job figures for July were surprisingly weak, and a report on labor market developments in August will be released the following Friday. Additionally, a larger revision of economic data up to and including March will be published on Friday of this week.