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The Commerce Department’s personal consumption expenditure (PCE) index rose 0.2% from June to July.
On an annualized basis, it rose from 3.3% compared to a year before, up from 3.0% in June. The Commerce Department describes the index as a measure “for capturing inflation across a wide range of consumer expenses and reflecting changes in consumer behavior.”
What does this increase mean? The PCE index is the Federal Reserve’s preferred gauge for measuring inflation. The fact that it is increasing could motivate the Fed to hike interest rates.
This story originally appeared in WORLD. © 2023, reprinted with permission. All rights reserved.
Tags: Federal Reserve inflation interest rates PCE index personal consumption expenditure U.S. Commerce Department
Gas is 60% higher than when Biden took office jan 2021, was 2.39 and today it is $3.83, increase of $1.44. And 1.44/2.39 = 60%…Thx Joe! That is factored into every item transported. Much worse he’s shut much of our oil down so Iran and Venezuela sell much more. A one man inflation and energy disaster!