Personal income increased 0.2% month-over-month in July (consensus 0.3%) following a 0.3% increase in June.
Personal spending jumped 0.8% month-over-month (consensus 0.7%) following an upwardly revised 0.6% increase (from 0.5%) in June.
The PCE Price Index was up 0.2% month-over-month and so was the core-CPE Price Index, both of which were in-line with expectations.
On a year-over-year basis, however, the inflation readings moved in the wrong direction. The PCE Price Index was up 3.3%, versus 3.0% in June, while the core-CPE Price Index was up 4.2%, versus 4.1% in June.
The key takeaway from the report would have to be the uptick in the year-over-year inflation readings. They weren’t of the eye-popping variety; however, they should catch the Fed’s eye as a basis not to cut rates anytime soon.