The basic personal consumption expenditure price index, which the Fed considers the broadest measure of inflation, remained unchanged from June, which was revised up by a tenth of a percentage point , the Commerce Department reported on Friday. This 3.6% reading was equivalent to the Dow Jones estimate and appeared to be the highest level since May 1991.
Including volatile food and energy prices, the index rose 4.2% year over year, up from 4% in June and the highest level since January 1991.
Personal income also jumped for the month, jumping 1.1%, well ahead of the Dow Jones estimate of 0.3%.
Consumer spending rose 0.3%, in line with expectations.
On a monthly basis, the inflation reading was more subdued. Core inflation rose 0.3%, according to estimates, while the overall figure was up 0.4%.
The Fed viewed inflationary pressures this year as largely the result of temporary pressures, although officials have acknowledged in recent days that the situation may last longer than expected.
Atlanta Fed Chairman Raphael Bostic told CNBC on Friday that business contacts in his area had told him they saw inflation persist beyond the short-term period.
“We don’t want to and we really can’t afford to have inflation that is too high because the people at the bottom of the ladder are going to be pretty badly affected,” he told CNBC’s Steve Liesman at the event. ‘a “Squawk Box”. maintenance.
Much of the current inflationary pressure comes from energy and food, which rose 23.6% and 2.4% respectively from a year ago.
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