The underlying variable stood at 4.2% after increasing one tenth


The US Personal Consumption Expenditure Price Index, the statistic chosen by the Federal Reserve (Fed) to monitor inflation, stood at 3.3% year-on-year in July, representing a three-year rise tenths compared to June, as revealed this Thursday by the Office of Economic Analysis of the Department of Commerce.

The underlying index, which excludes food and energy prices from its calculation due to their greater volatility, closed the seventh month of 2023 with an increase of 4.2%, one tenth more than the previous month.

In monthly rates, the general variable of the index experienced an advance of 0.2%, while the underlying variable also advanced 0.2%, both without changes since June. On the other hand, food prices grew by 3.5%, although energy prices fell by 14.6%.

To face the rise in prices, the Federal Reserve (Fed) has raised interest rates eleven times in a row since March 2022. In this way, it has placed them in the target range of between 5.25% and 5. 50%, its highest level since January 2001.

However, at its last meeting on July 26, the Fed will “continue to evaluate additional information” on the economic implications of earlier hikes and will adjust policy “as appropriate.” The next revision of this figure will be announced on September 20, the day the Fed officials will meet again.