U.S. Consumer Prices Rises Slightly More Than Expected In July

(RTTNews) - Consumer prices in the U.S. increased by slightly more than expected in the month of July, according to a closely watched report released by the Commerce Department on Wednesday.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 in July after edging down by 0.1 percent in June. Economists had expected prices to inch up by 0.1 percent.

The report also said the annual rate of growth by the PCE price index came in at 3.7 percent in July, unchanged from in June. The annual rate of growth was expected to dip to 3.6 percent.

Excluding food and energy prices, the core PCE price index still rose by 0.2 percent in July after inching up by 0.1 percent in June. The increase matched economist estimates.

The annual rate of growth by the core PCE price index was 3.3 percent in July, unchanged from June and in line with expectations.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

The report said personal income climbed by 0.4 percent in July after rising by 0.2 percent in June, while personal spending rose by 0.2 percent in July after increasing by 0.3 percent in June.