Key U.S. inflation gauge rises while consumer spending nearstagnation

PANews reported on July 31st that according to Jinshi, the Federal Reserve's preferred core inflation measure accelerated in June, reaching one of the fastest rates so far this year, while consumer spending barely grew, highlighting the factors dividing policymakers on the direction of interest rates. Data released Thursday showed that the core personal consumption expenditures (PCE) price index, which excludes food and energy prices, rose 0.3% from May. The year-on-year increase was 2.8%, reflecting limited progress in curbing inflation over the past year. The data showed that inflation-adjusted consumer spending rebounded slightly in June after declining in May. These data suggest that the pullbacks in the economy are dividing Federal Reserve officials on the direction of monetary policy. On the one hand, progress on inflation has essentially stagnated, and central bankers are concerned that President Trump's tariffs will put further upward pressure on prices. On the other hand, the decline in consumer spending due to a weak job market could lead to an overall economic slowdown.