U.S. July Inflation Remains Sticky, Q2 GDP Growth Unrevised at 1.5%

U.S. annual inflation, as measured by the Personal Consumption Expenditures (PCE) price index, held steady at 3.7% in July, remaining above the Federal Reserve's 2% target. Core PCE inflation, excluding volatile food and energy prices, was 3.3% annually. Second-quarter annualized gross domestic product (GDP) growth was unrevised at 1.5%, while consumer spending was revised up to 3.4%. These figures have slightly increased expectations for a Federal Reserve interest rate hike in September, with futures markets pricing in a 40.1% chance.