Fed's Favored Inflation Gauge Matches Expectations: July PCE Price Index Inches Up To 3.3%
Portfolio Pulse from Piero Cingari
The Federal Reserve's favored inflation measure, the Personal Consumption Expenditure (PCE) price index, increased to 3.3% in July, matching economists' projections. The core PCE price index, which excludes volatile food and energy items, also saw a slight increase from 4.1% to 4.2% in July, in line with economists' estimates.

August 31, 2023 | 12:34 pm
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NEUTRAL IMPACT
The increase in the PCE price index, a key inflation measure, could potentially impact the value of the Invesco DB US Dollar Index Bullish Fund (UUP), as inflation rates can influence currency values.
Inflation rates can influence the value of a currency. As the PCE price index is a key measure of inflation, any changes in this index could potentially impact the value of assets tied to the US dollar, such as the Invesco DB US Dollar Index Bullish Fund (UUP). However, the exact impact will depend on a variety of factors, including market reactions and other economic indicators.
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