On Friday local time, the Bureau of Economic Analysis of the US Department of Commerce released the PCE price index for July. As the Federal Reserve's preferred inflation gauge, the core PCE data showed a slight increase in July, indicating that the impact of the Trump administration's tariff hikes is gradually permeating the US economy.

Specific data revealed that the US overall PCE price index rose 2.6% year-on-year in July, meeting the expectation of 2.60% and unchanged from the previous value of 2.60%. Month-on-month, it increased by 0.2%, in line with expectations, compared to a previous value of 0.3%.

The core PCE price index, which excludes volatile food and energy components, rose 2.9% year-on-year, up 0.1 percentage points from June, reaching the highest level since February but still aligning with market expectations. The core PCE price index increased by 0.3% month-on-month, also meeting expectations.

The report indicated that the rebound in inflation was driven by rising service costs, which saw the largest increase since February. Energy prices fell by 1.1% month-on-month, while food prices slightly declined by 0.1%.

Meanwhile, consumer spending, which accounts for over two-thirds of US economic activity, grew by 0.5% month-on-month, in line with forecasts, demonstrating consumer resilience amid rising prices.