A highly anticipated report released by the Commerce Department on Friday showed U.S. consumer prices increased in line with economist estimates in the month of July, while the annual rate of price growth was unexpectedly flat.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in July after inching up by 0.1 percent in June. The modest increase matched expectations.
The core PCE price index, which excludes food and energy prices, also crept up by 0.2 percent in July. The uptick matched the increase seen in June as well as economist estimates.
Meanwhile, the report said the annual rates of growth by the PCE price index and the core PCE price index were both unchanged at 2.5 percent and 2.6 percent, respectively.
Economists had expected the year-over-year growth by both the PCE price index and the core PCE price index to tick up by 0.1 percentage point.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department’s report on personal income and spending.
The report said personal income increased by 0.3 percent in July after rising by 0.2 percent in June. Economists had expected income to rise by another 0.2 percent.
The Commerce Department also said personal spending climbed by 0.5 percent in July after increasing by 0.3 percent in June, in line with economist estimates.
At 9:45 am ET, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of August. The Chicago business barometer is expected to inch up to 45.5 in August from 45.3 in July, but a reading below 50 would still indicate contraction.
The University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of August at 10 am ET.
The consumer sentiment index for August is expected to be upwardly revised to 68.0 from the preliminary reading of 67.8, which was up from 66.4 in July.