Core Inflation Hits 2.9% In July As Forecasted, Reinforcing Fed’s Cautouos Tone

More Information in Our Economic Calendar. With Core Inflation Still Well Above the Fed’s 2% Target, The Report Signals That Price Pressures Remain Persent, Particularly in Services. The in-line Data Won’t forn An Immediate Policy Shift, But It Supports The Central Bank’s Stance of Keeping Rates Elegated Unil Cleerr Progress on Disinflation Is Achieved.

Consumer Spending Climbs, Driven by Service and Goods Personal Consumption Expenditures Increasted by $ 108.9 Billion, or 0.5%, Last Month. Services Spending Led The Gains A $ 60.2 Billion Rise, While Goods Purchases Rose $ 48.7 Billion. In Real Terms, Consumption Was Up 0.3%, Indicating Steady Demand Even After Adjusting for Inflation.

The Strength in Spending Highlights the Resilience of the US Consumer, A Key Pillar Supporting Economic Growth. However, with Real Disposable Income Rising Just 0.2%, The Widening Gap Raise Concerns About How Long Consp

Savings Rate Drops As Income Growth Trails SPEENDING Personal Income Grew by 0.4% in july, matting the rise in disposable income. But As Consumers Increated Their Outlays, The Personal Saving Rate Dipped to 4.4%, Down from 4.6% in June. This Decline Signals That Households May Be Relying More On Savings to Maintena Concemption Patterns, A Trend that Could Limd Limit Spending Capacity IF Inflation Remains Sticky.

The compensation-Driven Income Growth Was Solid, But Not Strong Enough To Keep Pace with SPEENDING, KEEPING The Pressure on Household Balance Sheets.