US: Annual Core PCE inflation stays unchanged at 3.6% in July as expected

• Annual Core PCE Price Index remained steady at 3.6% in July.
• US Dollar Index continues to move sideways around 93.00.

Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, edged lower to 0.4% in July, the US Bureau of Economic Analysis reported on Friday. On a yearly basis, the PCE Price Index rose to 4.2% from 4% in June and came in higher than the market expectation of 3.5%.

More importantly, the annual Core PCE Price Index, the Fed's preferred gauge of inflation, stayed unchanged at 3.6% as expected.

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen posting small daily losses at 93.00.