Consumer prices rose at a slightly faster rate last month than they did in the month before, data from the Commerce Department showed Friday.
The personal consumption expenditures price index climbed 0.2 percent in July compared with June, an acceleration from the 0.1 percent increase in June from May. The acceleration was in line with what economists had expected.
Over the past year, the personal consumption expenditures (PCE) price index rose 2.5 percent, matching the June year-over-year increase.
The Federal Reserve uses the PCE price index for its official two percent target and in its publicly released projections, although officials say they also watch other inflation measures closely. While the year-over-year figure is still a half a point higher than the target, on an annualized basis—meaning, if the current inflation rate continued for 12 months—PCE inflation has…
