September 01, 2023 ( MLN): The U.S. personal consumption expenditure (PCE) for the month of July 2023 clocked in at 3.3% YoY, compared to 3% YoY in June, the latest data issued by the U.S. Bureau of Labor Statistics on Thursday showed.
Whereas, in the last year, in June 2022, the PCE was 6.3% YoY.
On a sequential basis, US PCE went up by 0.2% MoM, the same as the 0.2% MoM increase in the previous month.
PCE is the preferred measure of inflation of the Federal Reserve, with the main focus on core PCE, which excludes food and energy prices, to see if it meets its target of below 2%.
Core PCE stood at 4.2% YoY, as compared to 4.1% in the previous month.
PCE is an indicator of inflation, which measures the prices that people living in the United States, or those buying on their behalf, pay for goods and services.
The PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior.
PCE is released each month, whereas, quarterly and annual data are included in the GDP release.
