The U.S. Commerce Department said on the 26th (local time) that the personal consumption expenditures (PCE) price index in July rose 3.7% from a year earlier. It was up 0.2% from the previous month.
Both topped the expert forecasts compiled by Dow Jones by 0.1 percentage point.
Excluding energy and food, the core PCE price index for July rose 3.3% year over year and 0.2% month over month. That matched expert forecasts.
The PCE price index is an inflation gauge that reflects the prices of goods and services consumed by households. The Federal Reserve (Fed) uses the PCE price index as the benchmark when judging whether it is meeting its monetary policy goal of a "2% inflation rate."
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