US Core PCE ticks higher to 2.9%, spending stays firm in July

U.S. headline inflation held steady in July, with the PCE price index unchanged at 2.6% yoy. Core measure ticked up to 2.9% from 2.8%, in line with forecasts. On a monthly basis, PCE rose 0.2% mom, and core prices increased 0.3% mom, pointing to modest but persistent price pressures.

Personal income rose 0.4% mom and spending climbed 0.5% mom, both as expected. The data suggest households remain resilient despite elevated borrowing costs, giving the Fed little urgency to accelerate easing.

Full US personal income and outlays release here.