The headline personal consumption expenditure (PCE) price index rose 1.6 percent year over year in July, a continuation of its June pace. Core PCE price inflation, which excludes food and energy, rose 1.5 percent year over year in July, also unchanged from June. PCE headline inflation rose at a 1.0 percent annualized rate in July, a deceleration from a 2.6 percent pace in June. The annualized core figure rose 1.1 percent, down from 1.8 in June. Though it continues to run below the 2 percent objective of the Federal Open Market Committee, inflation has picked up since the beginning of the year, and recent PCE price index data suggest inflationary pressures remain at bay.
