The Personal Consumption Expenditure Price Index (PCE) in the United States increased by 0.2% in July in the monthly comparison, according to information released by the US Department of Commerce this Thursday (31). In June, the change was 0.2%. With this, the annual variation of the PCE was 3.3% in July, from 3.0% registered in the previous month.
Core PCE, which excludes energy and food, increased by 0.2% in July from the previous month, staying within investor estimates. Thus, the index reached 4.2% in the annual comparison.
US personal income increased 0.2% mom in July 2023, after a 0.3% increase in the previous month, slightly below market forecasts for a 0.3% increase. Personnel expenses increased by 0.4%, driven by a 0.4% increase in wages and salaries and a 0.3% increase in other costs.
Personal spending in the US increased by 0.8% in July 2023, the highest since January and beating market expectations for a 0.7% increase, underlining consumers’ resilience to higher prices and interest rates.