No surprises from inflation that matters: the Core PCE Price Index rose 0.1% in July. Year over year, the figure remains at 1.6%, extremely stable if you wish. Personal income advanced 0.4% and consumption +0.3%, also as expected. These two saw small upwards revisions for June worth +0.1% each, in the only minor surprises in this report.
The greenback continues looking strong and marginally extends its gains.
The Federal Reserve focuses on a specific inflation figure: the core PCE Price Index. This measure of inflation was expected to rise by 0.1% in July, exactly like in June. Year over year, price rises have been stable at 1.6% y/y. At the same time, the US releases personal income, which carried expectations of advancing 0.4% after 0.2% beforehand. Personal consumption was projected to rise 0.3% after 0.4% in June.
The Federal Reserve has two mandates: jobs and inflation. On the former, things look positive with solid job gains. On the latter, things are moving very slowly.
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