US Inflation Eases to 3.4% as Core PCE Sticks at 3.3%, Threatening Stocks
Updated
Updated · Yahoo Finance · Aug 17
US Inflation Eases to 3.4% as Core PCE Sticks at 3.3%, Threatening Stocks
2 articles · Updated · Yahoo Finance · Aug 17
Summary
July headline inflation cooled to 3.4% from 3.5% in June and 4.2% in May, matching forecasts and easing fears of a September Fed rate hike.
Energy prices drove that relief: crude has fallen from recent highs since US-Iran peace talks accelerated in June, pulling fuel costs lower and softening the headline reading.
Core PCE, however, barely moved—slipping to 3.3% in June from 3.4% in May—and Cleveland Fed nowcasts see it holding near 3.3% in July and August.
That stickier underlying inflation suggests tariff effects and higher transport and supply-chain costs tied to the Iran war are still being passed through to consumers.
With the Dow, S&P 500 and Nasdaq at fresh highs since early June, stubborn core inflation leaves Wall Street exposed even as the top-line data improve.