A measure of inflation the Federal Reserve uses to shape its policy rose 3.6% in July from a year earlier, beating Wall Street expectations, but also matched the highest level in near 30 years old.
The Commerce Department announced on Friday that the main price index for personal consumption expenditure, which the Fed considers a general measure of inflation, was unchanged from June, after being revised down to a tenth of percentage point. This 3.6% reading was comparable to the Dow Jones estimate and appeared to be the highest level since May 1991.
Including volatile food and energy prices, the index rose 4.2% year-on-year, up from 4% in June and the highest level since January 1991.
Personal income also rose for the month, jumping 1.1%, well ahead of the Dow Jones estimate of 0.3%.
Consumer spending rose 0.3%, in line with expectations.
On a monthly basis, inflation readings were more subdued. Core inflation rose 0.3%, according to estimates, while the overall figure stood at 0.4%.
The Fed has seen inflationary pressures this year largely the result of temporary pressures, although officials have acknowledged in recent days that the situation could be longer than expected.
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