Among the year-over-year personal consumption expenditure (PCE) price index components, the nondurable goods subindex was up 1.5 percent in July, down from June’s 1.7 percent pace yet much higher than the 12-month average of 0.4 percent. The durable goods subindex was down 2.3 percent year over year in July, an acceleration from June’s decline of 2.5 percent yet consistent with the long-term deflationary trend in the durable goods market. The services subindex rose 2.2 percent year over year, unchanged from June. Services, which account for nearly two-thirds of personal expenditures, have experienced relatively stable inflation of around 2.0 percent since 2010, down from the typical 3.0 percent prerecession.
