US: Annual core PCE Price Index edges higher to 1.3% in July

• Annual core PCE Price Index in US came in higher than expected in July.
• US Dollar Index stays deep in the negative territory.

The Personal Consumption Expenditures (PCE) Price Index in July rose 0.3% on a monthly basis, the US Bureau of Economic Analysis reported on Friday. On a yearly basis, the PCE Price Index came in at 1% and missed the market expectation of 1.2%.

More importantly, the core PCE Price Index, the Federal Reserve's preferred gauge of inflation, increased from 1.1% in June to 1.3% in July and came in higher than analysts' estimate of 1.2%. On a monthly basis, the core PCE Price Index matched June's reading of 0.3%.

Market reaction

The US Dollar Index, which slumped to a 10-day low of 92.20 earlier in the day, recovered modestly in the last minutes and is currently down 0.66% on the day at 92.38.