US Fed-Preferred PCE Inflation Holds at 3.7% in July as Income and Spending Both Rise

The US Bureau of Economic Analysis (BEA) released its Personal Income and Outlays report for July on Wednesday, 4 Shahrivar 1405 (August 26, 2026). Personal income rose $115.1 billion (0.4 percent from the prior month) and personal consumption expenditures (PCE) rose $36.3 billion (0.2 percent). The PCE price index, the Federal Reserve's preferred inflation gauge, rose 0.2 percent month over month and 3.7 percent year over year in July, unchanged from June's annual reading; the core index, excluding food and energy, rose 0.2 percent monthly and 3.3 percent year over year. The personal saving rate stood at 3.0 percent in July. The PCE index is the Fed's primary reference for interest rate decisions, and its path feeds into the dollar index (DXY), global gold prices, and through them Iran's coin and currency markets.