The US Federal Reserve’s favored measure of inflation held steady in July according to government data Friday, sustaining expectations that the central bank is on its way to interest rate cuts starting next month.
The personal consumption expenditures (PCE) price index edged up on a monthly basis from 0.1 percent in June to 0.2 percent last month, in line with analysts’ expectations.
But from the same period a year ago, the PCE price index held firm at 2.5 percent, the Department of Commerce said.
Excluding the volatile food and energy segments, PCE inflation was also steady.
“Today’s report shows we are making real progress, with inflation falling to 2.5 percent — continuing at the lowest level in more than three years,” said President Joe Biden in a statement.
These add to signs that the Fed will gradually lower the benchmark lending rate from decades-high levels, starting from its next policy …