The Fed’s preferred inflation gauge did better than expected last month

CNN  —  The Federal Reserve’s go-to inflation gauge held at 2.5% in July, Commerce Department data showed Friday. That’s better than anticipated and shows progress — but still underscores the bumpy process for inflation’s descent. The Personal Consumption Expenditures price index was 2.5% for the year ended in July, unchanged from JuneOn a monthly basis, prices increased 0.2% versus 0.1% the prior month. Economists had fully anticipated the index would move higher due to “base effects,” where previous data showed faster-than-usual disinflation. Consensus expectations were for PCE to rise by 0.2% for the month and 2.6% for the year. This story is developing and will be updated.