US core PCE inflation: 0.2% m/m in July, in line
US Core PCE Price Index rose 0.2% m/m in July (est 0.2%; prev 0.1%) while y/y was 3.3% (est 3.3%; prev 3.3%).
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The dollar index edged above 99 on Wednesday as investors assessed economic data and the outlook for Federal Reserve policy.
Inflation-adjusted consumer spending was unchanged in July, while the PCE price index rose 0.2% month-on-month.
Core PCE also increased 0.2% from the previous month and remained elevated at 3.3% year-on-year, well above the Fed’s 2% target.
The data could reinforce expectations that policymakers will keep interest rates unchanged while monitoring whether inflationary pressures linked to the Iran war continue to ease.
At the same time, oil prices fell for a third consecutive session, reducing inflation concerns.
Now, investors await Fed Chair Kevin Warsh’s remarks at the Jackson Hole symposium on Friday for further guidance.
Meanwhile, the dollar remained near a three-month low, pressured by concerns over the Treasury’s expanded debt buyback programme and broader US fiscal risks.