Annual core inflation climbed by 3.3% in July - UPI.com

Spending on gasoline and energy goods fell by $14 billion in July, the largest decline in spending to either a goods or services category in the Bureau of Economic Analysis' monthly personal consumption expenditures report. File Photo by Bonnie Cash/UPI | License Photo

Aug. 26 (UPI) -- Core personal consumption expenditures, a key measure of inflation for the Federal Reserve, increased by 3.3% on an annual basis in July, the Bureau of Economic Analysis reported Wednesday.

The annual reading excludes volatile food and energy but with those items counted personal consumption expenditures rose 3.7%. On a month-to-month basis, core inflation was up 0.2% over June.

July's inflation report for total and core inflation were 0.1% higher than the Dow Jones consensus projected.

The monthly reading of personal income increased by $115.1 billion, a 0.4% rate, while disposable income jumped by $125.9 billion or 0.5%.