Inflation in the US amounted to 2.5 percent in July according to the so-called PCE measure. It was unchanged compared to the previous month as well as in line with market expectations according to Bloomberg’s compilation.
The so-called core inflation according to the PCE measure amounted to 2.6 percent at the same time. That too was unchanged, although the market believed in a rise to 2.7 percent. .
PCE inflation is seen by the US central bank, the Federal Reserve (Fed), as the most important price increase measure when decisions on future policy rates are to be made. Unlike the standard CPI measure which is based on a basket of goods, PCE inflation is calculated on what is actually consumed.