Data from the US Bureau of Labor Statistics released recently regarding the Core Personal Consumption Expenditures Price Index for last July showed an increase of 0.1%, which is lower than expectations that indicated an increase of 0.2%. It is also lower than the previous reading of the index, which recorded a growth of 0.6% in June.

It is noteworthy that this index measures the change in prices of goods and services purchased by consumers, excluding food and energy, and a reading higher than expectations positively reflects on currency movements, and vice versa.

This index differs from the Consumer Price Index, as it only measures targeted goods and services consumed by individuals. Prices are measured according to total expenditure for each item, providing insight into consumer spending behavior. Therefore, some consider this index to be the preferred inflation measure by the US Federal Reserve Bank.