Core personal consumption expenditures, a key measure of inflation for the Federal Reserve, increased by 3.3% on an annual basis in July.

The personal consumption expenditures price index was expected to rise 0.1% monthly and 3.6% on a 12-month basis, according to economists surveyed by Dow Jones.

The US Federal Reserve's preferred inflation gauge rose 3.7% annually in July, while core PCE held at a 3.3% rate.

The personal consumption expenditures index report by the Bureau of Labor Statistics was released on Wednesday morning.

Core PCE inflation for July is at 3.3%, above the Fed's 2% target. Rate cut in next three meetings at 0.1% YES.