The Federal Reserve’s preferred measure of inflation in the US fell for the first time in more than two years last month, data indicated Friday, suggesting that consumer price pressures are beginning to ease amid falling gas prices and a improving labor market.
July’s core PCE price index rose 4.6% from last year, the lowest since October last year, and just 0.1% on a monthly basis, the Bureau of Economic Analysis reported, a figure markedly higher. than Wall Street’s predictions.
The headline PCE index fell 0.1% over the month, following the flat-line inflation estimate published by the Commerce Department, and fell to 6.3% over the year. the month-over-month decline was the first since April 2020.