Core US personal consumption expenditure data ticked up slower than expected in July, marking positive news as hopes for interest rate reductions grow.
Bureau of Economic Analysis data showed the index climbed by 2.5% over the year to last month and in line with growth seen in June.
Core PCE, excluding food and energy, ticked up 2.6% over the month, again at the same level as June but below market expectations for a 2.7% increase.
This was as both the headline and core figures climbed by 0.2% month-on-month in July.
Spending and incomes rose by 0.5% and 0.3% over the course of the month respectively, with the latter dropping to 0.1% on a real basis when accounting for inflation.
The figures, which represent the Federal Reserve’s preferred measure of inflation, come as speculation grows for base rate cuts in the US from next month.