The latest data showed that US PCE inflation came in at 2.5% in July, unchanged from the previous month and below market expectations. The global financial market was eagerly awaiting this data as it could influence the US Federal Reserve's rate cut decisions.
Commerce Department Data
According to the Commerce Department report, the latest US PCE data showed that inflation came in at 0.2% in July, up from the 0.1% rise noted in the prior month. On a year-over-year (YoY) basis, inflation came in at 2.5%, down from Wall Street estimates of 2.6%, fueling market optimism.
Key Inflation Indicators
Simultaneously, the Core PCE index, which excludes food and energy prices, showed that it also rose 0.2%, showing no change from the June figures. On a YoY basis, the Core PCE showed that inflation stood at 2.6%, unchanged from June's figures and below market estimates of 2.7%.
Market Reaction
The latest data fueled market optimism as the PCE inflation remains below expectations, which could influence the US Federal Reserve's rate cut decisions.
The latest US PCE inflation data came in below market expectations, fueling positive market reaction and increasing expectations for a potential rate cut by the Federal Reserve.
Comments