(NewsNation) — The Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures price index, rose as expected on Friday as Americans head into Labor Day weekend.
The PCE price index was up 2.6% in July year-over-year, according to a Commerce Department report released Friday. That number is in line with price index forecasts and marks the same annual pace as June.
When only “core” prices are considered — excluding volatile food and energy costs — prices rose 2.9% in July, an uptick from June’s 2.8% and the highest since February.
From month to month, the PCE price index increased by 0.2%. That number jumps to 0.27% when only “core” prices are considered.
The figures are similar to those reported earlier this month in the more widely followed Consumer Price Index, which has risen 2.7% over the past year.
Unlike the CPI, the PCE price index takes a broader scope into account — including spending done not only by households but on their behalf, such as employer health insurance.
The Friday report is the last before the Federal Reserve’s scheduled policy committee meeting in September, at which Fed chair Jerome Powell could lower interest rates after months of holding them steady.
Powell has maintained the interest rates due to President Donald Trump’s sweeping tariffs, the effects of which Powell warned earlier this year would not be known for some time.
The latest data was released on the heels of Trump’s attempt to remove Federal Reserve Governor Lisa Cook over alleged mortgage fraud. Cook has vowed to stay at her post and has filed legal action against the administration.
The Associated Press contributed to this report.
