The Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation tracker, held steady in July. The index was unchanged from June, highlighting stubborn inflationary pressures, while the closely watched US price gauge rose in line with expectations.
Economists surveyed by Dow Jones expected the index to rise 0.1 percent monthly and 3.6 percent on a 12-month basis. Core personal consumption expenditures, a key measure of inflation for the Federal Reserve, increased by 3.3 percent on an annual basis in July.
Consumer spending rose by 0.2 percent in July, which was down a smidge from 0.3 percent growth a month earlier. As consumer spending stalled, the Federal Reserve has more room to hold interest rates steady.