Inflation & Prices
Fed’s Preferred Inflation Gauges Rise Modestly, Spending Jumps
- Core price index posts smallest back-to-back gains since 2020
- Inflation-adjusted personal spending rises most since January
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The Federal Reserve’s preferred measure of underlying inflation posted the smallest back-to-back increases since late 2020, encouraging a burst of consumer spending and feeding growing expectations that the economy can avert a recession.
The core personal consumption expenditures price index, which strips out the volatile food and energy components, rose 0.2% in July for a second month. The overall PCE price index also increased 0.2%, Bureau of Economic Analysis data showed Thursday.