{"id":118571,"date":"2025-08-29T14:32:08","date_gmt":"2025-08-29T14:32:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/118571\/"},"modified":"2025-08-29T14:32:08","modified_gmt":"2025-08-29T14:32:08","slug":"pce-inflation-report-july-2025","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/118571\/","title":{"rendered":"PCE inflation report July 2025:"},"content":{"rendered":"

\"Core<\/p>\n

Inflation edged higher in July, according to the Federal Reserve’s preferred inflation measure, indicating that President Donald Trump<\/a>‘s tariffs are working their way through the U.S. economy.<\/p>\n

The personal consumption expenditures price index<\/a> showed that core inflation, which excludes food and energy costs, ran at a 2.9% seasonally adjusted annual rate, according to a Commerce Department report Friday. That was up 0.1 percentage point from the June level and the highest annual rate since February, though in line with the Dow Jones consensus forecast.<\/p>\n

On a monthly basis, the core PCE index increased 0.3%, also in line with expectations. The all-items index showed the annual rate at 2.6% and the monthly gain at 0.2%, also hitting the consensus outlook.<\/p>\n

The Fed uses the PCE price index as its primary forecasting tool. Though it watches both numbers, policymakers consider core inflation to be a better indicator of longer-term trends as it excludes the volatile gas and groceries figures.<\/p>\n

Central bankers target inflation at 2%, so Friday’s report shows the economy still a distance from where the Fed feels comfortable.<\/p>\n

Nevertheless, markets expect the Fed to resume lowering its benchmark interest rate when policymakers convene next month. Fed Governor Christopher Waller reiterated his support for a cut in a speech Thursday, saying he would entertain a larger move if labor market data continue weakening.<\/p>\n

“The Fed opened the door to rate cuts, but the size of that opening is going to depend on whether labor-market weakness continues to look like a bigger risk than rising inflation,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “Today’s in-line PCE Price Index will keep the focus on the jobs market. For now, the odds still favor a September cut.”<\/p>\n

Trump in April imposed a baseline 10% tariff on all imports and since has leveled so-called reciprocal tariffs on multiple trading partners and slapped duties in individual goods as well. In addition, the White House has scrapped exceptions for goods under $800.<\/p>\n

Along with the inflation moves, consumer spending increased 0.5% on the month, in line with forecasts and indicative of strength despite the higher prices. Personal income accelerated 0.4%, rounding out a report that saw all figures hit the consensus outlook.<\/p>\n

Stock market futures remained negativ<\/a>e after the release while Treasury yields held gains.<\/p>\n

Inflation numbers were held in check by a 2.7% annual decline in prices for energy goods and services. Food prices rose 1.9% from a year ago. The balance also tilted heavily toward services prices, which jumped 3.6%, compared with just a 0.5% increase in goods.<\/p>\n

On a monthly basis, energy was off 1.1% and food was down 0.1%. Services prices rose 0.3%, essentially accounting for all the monthly increase as goods decreased 0.1%.<\/p>\n

Don\u2019t miss these insights from CNBC PRO<\/p>\n","protected":false},"excerpt":{"rendered":"Inflation edged higher in July, according to the Federal Reserve’s preferred inflation measure, indicating that President Donald Trump‘s…\n","protected":false},"author":2,"featured_media":118572,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[4,449,116,28,122,1072,12,101,2402,112],"class_list":["post-118571","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-breaking-news","tag-breaking-news-economy","tag-breaking-news-markets","tag-business","tag-business-news","tag-donald-j-trump","tag-donald-trump","tag-economy","tag-inflation","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/118571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=118571"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/118571\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/118572"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=118571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=118571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=118571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}