US PCE Inflation Holds at 3.7% as Fed Rate Decision Looms

The Federal Reserve's preferred inflation gauge showed persistent price pressures in July, with the Personal Consumption Expenditures Price Index rising 0.2 percent from June and 3.7 percent year-over-year, according to data released Wednesday by the Commerce Department. The figures, which came in slightly above economists' expectations, reinforce concerns about stubborn inflation ahead of the central bank's September interest rate decision. The annual PCE inflation rate held steady at 3.7 percent, unchanged from June and above the forecast of 3.6 percent. Core PCE, which excludes volatile food and energy prices, also rose 0.2 percent for the month and remained at 3.