Inflation rose at a temperate pace in July, cementing thoughts of interest-rate cuts by the Federal Reserve, according to economic data released on Friday.
Wall Street applauded the development, with stock futures added to their gains after the core personal consumption expenditures price index increased 0.2% from June. The tally, which excludes volatile food and energy prices, is up 2.6% from a year ago, according to the Bureau of Economic Analysis.
Adjusted for inflation, consumer spending advanced 0.4% last month, up from June.
Fed Chair Jerome Powell said last week that “the time has come” for the central bank to adjust its monetary policy, with economists penciling in a reduction at the Fed’s September 18 meeting.
—This is a developing story.