Core inflation rose to 2.9% in July, highest since February | AI News Digest
Core inflation in the U.S. rose to 2.9% in July, marking the highest rate since February, according to the Commerce Department. This increase, attributed to the impact of President Trump's tariffs, aligns with the Dow Jones consensus forecast. The personal consumption expenditures price index showed a monthly increase of 0.3%, while consumer spending also rose by 0.5%. Despite the uptick in inflation, markets anticipate that the Federal Reserve may lower interest rates in the upcoming month. The report indicates that while inflation remains above the Fed's target, consumer spending and personal income growth suggest economic resilience.
