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U.S. Personal Consumption Expenditures Inflation Gauge Held at 3.7 Percent in July
Just the facts
The Personal Consumption Expenditures price index, the Federal Reserve's primary inflation metric, held at an annual rate of 3.7 percent in July 2026, unchanged from June. Core PCE inflation, which excludes volatile food and energy components, increased 3.3 percent on an annual basis. The reported figure exceeded expectations from economists polled by FactSet, who had projected a rate of 3.6 percent. Federal Reserve policymakers evaluate PCE data when determining monetary policy and benchmark interest rate settings.
Why this is news
The U.S. Department of Commerce released economic data showing the Personal Consumption Expenditures price index held at an annual rate of 3.7 percent in July 2026.
Sources
This summary is compiled strictly from the original reporting below.