Too early to declare victory; core PCE inflation up 0.1% in July

26 August 2022

 

Summary: US core PCE price index up 0.1% in July, in line with expectations; annual rate slows from 4.8% to 4.6%; US inflation remains too high, too early to declare victory; long-term Treasury yields down; more rate rises still expected. One of the US Fed’s favoured measures of inflation is the change in the core personal consumption expenditures (PCE) price index. After hitting the Fed’s target at the time of...

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