The Personal Consumption Expenditures price index rose 3.7% year-over-year in July 2026, matching June’s reading and coming in slightly above the 3.6% consensus forecast. This represents a meaningful deceleration from May’s 4.1% peak, though the rate of decline appears to be flattening out. Core PCE, which strips out food and energy, remained unchanged at 3.3% year-over-year. Personal income increased by $115.1 billion while disposable personal income climbed $125.9 billion, but real PCE was essentially flat when adjusted for inflation, suggesting thinning purchasing power gains. The data gives the Federal Reserve maximum flexibility with minimum urgency to act on interest rates.
Source: Read the original article
