Inflation in the United States rises by 3.3 percent

“Al Arabiya” – Data from the U.S. Department of Commerce showed that the Core Personal Consumption Expenditures (PCE) Price Index, which the Federal Reserve prefers for measuring inflation trends, rose by 3.3 percent year-on-year in July, in line with analysts’ expectations.

On a month-on-month basis, the core index increased by 0.2 percent after seasonal adjustment. Meanwhile, the overall PCE index rose by 0.2 percent month-on-month, while registering 3.7 percent year-on-year, surpassing analysts’ expectations of 3.6 percent.

The core inflation reading is one of the key indicators monitored by Federal Reserve officials when assessing the path of monetary policy, as it excludes the more volatile food and energy prices.

In other economic data, U.S. Gross Domestic Product (GDP) grew by 1.5 percent in the second estimate, in line with expectations.