Previous Trading Days Events 26.07.2024

The personal consumption expenditures PCE price index nudged up 0.1 last month after being unchanged in May. Consumer spending slowed a bit last month. Signs of easing price pressures and a cooling labour market could boost the confidence of Fed officials that inflation is moving toward the U.S. central banks 2 target.

The increase in PCE inflation was in line with economists expectations. In the 12 months through June, the PCE price index climbed 2.5. That was the smallest yearonyear gain in four months and followed a 2.6 advance in May.

Excluding the volatile food and energy components, the PCE price index rose 0.2 last month. The socalled core PCE inflation gain was 0.182 before rounding. Mays unrounded figure was revised up to 0.127 from the previously reported 0.083. Aprils core PCE inflation was upgraded to 0.261 from the previously estimated 0.259 rise.

In the 12 months through June, core PCE inflation advanced 2.6, matching Mays rise. Core inflation increased at a 2.3 annualised rate in the three months through June, sharply slowing from the 2.7 pace in May.

The Fed tracks the PCE price measures for monetary policy.

The muchimproved inflation readings indicate that the flareup in inflation in the first quarter was temporary, said Kathy Bostjancic, chief economist at Nationwide. Moreover, if rental inflation has finally decelerated as recent data suggest, then inflation looks to be back on a sustained downward trend….