U.S. Report on Inflation is Out – Here is What You Should Know

The PCE inflation report released moments ago will likely to reinforce expectations of an impending Federal Reserve interest rate cut.

For July, the core PCE Price Index increased by 0.2% month-over-month (MoM), maintaining the same growth rate as June. Annually, core PCE has risen by 2.6%, lower than expectations.

The core PCE Price Index, which omits the more volatile food and energy prices, plays a crucial role in shaping market expectations regarding the Fed’s interest rate decisions.

As it excludes erratic components, this indicator is closely watched by both the central bank and market participants to gain a clearer perspective on underlying inflation trends.

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Earlier this month, data from the Bureau of Labor Statistics (BLS) revealed that the U.S. Consumer Price Index (CPI) increased by 2.9% annually in July, while the core CPI rose by 3.2%, slightly lower than the 3.3% recorded in June.

The Fed’s preferred inflation gauge for July shows a sustainable trend of disinflation, bolstering Federal Reserve officials’ confidence as they eye interest rate cuts next month.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.