Fed’s Preferred Inflation Measure Exceeds Expectations in July

Grady Trimble of Fox Business reports from the Iowa State Fair, where vendors and attendees discuss how rising prices affect spending habits. Even with higher costs, fairgoers show resilience.

This article on the July 2026 PCE inflation release will be updated as more information becomes available.

The Federal Reserve’s favored inflation gauge edged upward in July, with price increases staying well above the central bank’s target.

The Commerce Department announced on Wednesday that the personal consumption expenditures (PCE) index climbed 0.2% month‑over‑month and rose 3.7% year‑over‑year in July. Both readings surpassed the forecasts of economists surveyed by LSEG, which had called for a 0.1% monthly gain and a 3.6% annual increase.

The core PCE measure, which strips out volatile food and energy prices, also rose 0.2% for the month and is 3.3% higher than a year ago, matching the LSEG consensus.

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