US Inflation Holds at 3.7% for 65th Month as Fed Weighs Rate Hike
Updated
Updated · Yahoo Finance · Aug 26
US Inflation Holds at 3.7% for 65th Month as Fed Weighs Rate Hike
3 articles · Updated · Yahoo Finance · Aug 26
Summary
July PCE inflation stayed at 3.7% from a year earlier, above the 3.6% forecast and the Fed's 2% target, halting the recent decline from a war-driven peak.
Monthly PCE rose 0.2% after a 0.1% drop in June, while core PCE held at 3.3% annually and accelerated to 0.2% on the month from 0.1%.
Consumer spending slowed modestly and was flat after inflation, but incomes outpaced prices, suggesting households could spend more later this year.
Capital-goods orders rebounded, core durable-goods shipments signaled brisk AI-linked business investment, and second-quarter corporate profits posted their second-fastest rise on record.
Economists said the data point to at least 3% annualized GDP growth in the third quarter, sharpening focus on Fed Chair Kevin Warsh's Jackson Hole debut speech on Friday.