An inflation measure closely watched by the Federal Reserve ticked higher in July as steep prices continue to squeeze millions of US households.
The personal consumption expenditures (PCE) index showed that consumer prices rose 0.2% from the previous month, according to the Commerce Department.
On an annual basis, prices climbed 3.3% — up from 3% the previous month, underscoring the challenge oftaming high inflation.
The figures were both in line with estimates from Refintiv economists.
Core prices, which strip out the more volatile measurements of food and energy, climbed 0.2% from the previous month and 4.2% from the previous year.
While the Fed is targeting the PCE headline figure as it tries to wrestle consumer prices back to 2%,Chair Jerome Powellpreviously told reporters that core data is actually a better indicator of inflation.
Both the core and headline numbers point to inflation that is still running above the Fed’s preferred 2% target.
“The PCE index has been moving in the right direction overall, but core inflation remains stickier than expected keeping the data dependent and agile Fed more likely to raise rates again this year,” said Quincy Krosby, chief global strategist for LPL Financial.
Other figures included in the report showed that consumer spending jumped 0.8% in July, compared with a 0.6% increase in June.
Still, many economists anticipate that spending will slow in coming months as spenders continue to grapple with expensive goods, high interest rates and the resumption of federal student loan payments.
“Consumers spent freely in July even if it meant dipping into their savings amid slower income growth,” said Gregory Daco, EY chief economist. “We anticipate the trend will slow in August and September as elevated prices for goods and services, higher borrowing costs and moderating income limit consumers spending appetite.”
Stocks climbed Thursday morning as the report fueled investor hopes for a rate pause.
The Fed in July approved another interest rate hike, lifting the benchmark rate to the highest level since 2001.
Powell signaled last week that additional rate hikes may be on the table this year as policymakers assess whether high inflation has retreated for good.
“Although inflation has moved down from its peak a welcome development it remains too high,” he said. “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
The prime minister’s spokesman has refused eight times to confirm whether recognition of Palestine could go ahead if Hamas remain in power and the hostages are not released.
Keir Starmer’s spokesman was questioned by journalists for the first time since the announcement last week that the UK will formally recognise the state in September – unless Israel meets certain conditions including abiding by a ceasefire and increasing aid.
The policy has been criticised by the families of UK hostages, campaigners and some Labour MPs, who argue it would reward Hamas and say it should be conditional on the release of the remaining hostages.
A senior Hamas politician, Ghazi Hamad, speaking to Al Jazeera, said at the weekend that major nations’ decision to recognise a Palestinian state “is one of the fruits of 7 October”.
The PM’s spokesman said on Monday: “The PM is clear that on 7 October, Hamas committed the worst act of terror in Israel’s history. That horror has continued since then.
“As the foreign secretary said over the weekend, Hamas are rightly pariahs who can have no role in Gaza’s future, there is a diplomatic consensus on that. Hamas must immediately release all hostages and have no role in the governance of Gaza.”
But asked whether removing Hamas from power and releasing hostages were conditions for statehood, he said a decision on recognition would be made at the UN General Assembly meeting in September, based on “an assessment of how far the parties have met the steps we have set out. No one side will have veto on recognition through their actions or inactions.”
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Up to 300 children could be evacuated from Gaza and given NHS treatment in the UK. The plans are reportedly set to be announced within weeks.
He added: “Our focus is on the immediate situation on the ground, getting more aid in to end the suffering in Gaza and supporting a ceasefire and a long-term peace for Israelis and Palestinians based a two-state solution.”
Starmer, who recalled his cabinet for an emergency meeting last week before setting out the new position, is following the lead of French president Emmanuel Macron, who first pledged to move toward recognising Palestinian statehood in April.
Canada has also backed recognition if conditions are met, including by the Palestinian Authority.
The prime minister had previously said he would recognise a state of Palestine as part of a contribution to a peace process.
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Efforts to bring Gazan children to the UK for urgent medical treatment are set to be accelerated under new government plans.
In his announcement last Tuesday, he said: “We need to see at least 500 trucks entering Gaza every day. But ultimately, the only way to bring this humanitarian crisis to an end is through a long-term settlement.
“So we are supporting the US, Egyptian and Qatari efforts to secure a vital ceasefire. That ceasefire must be sustainable and it must lead to a wider peace plan, which we are developing with our international partners.
“I’ve always said we will recognise a Palestinian state as a contribution to a proper peace process, at the moment of maximum impact for the two-state solution. With that solution now under threat, this is the moment to act.”
Adam Rose, a lawyer acting for British families of hostages in Gaza, has said: “Why would Hamas agree to a ceasefire if it knew that to do so would make British recognition of Palestine less likely?”
We’re starting this week’s Green Deals with EcoFlow’s August Home Backup Sale that is seeing up to 59% initial discounts, bonus savings, continued 3x and 3.5x EcoCredit rewards, new free gift promotions, and more – with plenty of ongoing low prices like the DELTA 2 Max Solar Generator bundle that gives you a 220W panel at its $1,139 low, among many others. We also have Lectric’s ONE Long-Range e-bike getting the biggest $319 bundle of 2025 at $2,399, as well as Anker’s SOLIX C300 90,000mAh Power Stations and bundle options starting from $170. From there, we also have EcoFlow’s latest 48-hour flash sale on two power station bundles and a dual solar panel option, alongside the best price of the year on Worx’s 20V JawSaw PowerShare Cordless Chainsaw.Plus, all the hangover savings from last week are at the bottom of the page, rounded together in our Electrified Weekly coverage, which includes the new EcoFlow TRAIL releases, exclusive Bluetti Apex 300 launch savings, and much more.
Save up to 59% on EcoFlow power stations and backup bundles with bonus savings, free gifts, up to 3.5x EcoCredits – all from $179
EcoFlow has launched a new Home Backup Sale through August 17 that is continuing some of the Monthly Madness rewards from last week while adding new free gift promotions and extra savings – with this event running parallel to the brand’s release of the new TRAIL series power stations. One of the notable low prices we’re seeing during this period is on EcoFlow’s DELTA 2 Max Solar Generator bundle that comes with a 220W solar panel for $1,139.05 shipped, after using the code 25EFDCAFF at checkout for an additional 5% off your order, which beats out Amazon’s current pricing by $60. Normally going for $2,548 in full here, over the last seven months we’ve seen discounts take things to their lowest for $1,139 back during last month’s Prime Day event, with prices otherwise keeping at or above $1,199. That low price is coming back thanks to the bonus savings, giving you $1,409 in savings and the best price we have tracked.
As previously mentioned, this Home Backup Sale is seeing some continuations alongside some new free gift promotions. Of course, there’s the extra 5% savings you’ll get using the code 25EFDCAFF at checkout, but standard members will also be getting 3x EcoCredits from orders, while Plus members get 3.5x EcoCredits – which you can use to score future discounts and other exchanged rewards. If you already have some saved, you can spend 500 to unlock a spin on the brand’s Lucky Draw wheel for guaranteed gifts/savings. There’s also the chance to get a free refurbished RIVER 2 Max power station with purchases of select DELTA series units.
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For folks not wanting to spend too much on larger whole-home backup systems but want to maintain their peace of mind during trips away from home and possible at-home outage emergencies, EcoFlow’s DELTA 2 Max is a solid option that starts with a 2,048Wh LiFePO4 capacity and can expand as high as 6,144Wh with add-on expansion batteries. It pumps out a steady stream of 2,400W of power through its 15 output port options, with the ability to surge up to 3,400W once you’ve activated its X-Boost mode in the remote app controls. A wall outlet can bring the battery back to 83% in 1.1 hours, with the option to plug it into your car’s auxiliary port to charge as you drive, on top of a max 1,000W solar input that can also be used simultaneously with a wall outlet for faster 43-minute charge times.
Lectric’s 60-mile traveling ONE e-bike with a Gates carbon belt drive gets largest $319 bundle of 2025 at $2,399
Looking in on Lectric’s ongoing Back to School Sale, we wanted to shine a spotlight on the biggest bundle we’ve seen accompany the brand’s ONE Long-Range e-bike at $2,399 shipped, which is getting $319 in free gear that includes a rear cargo rack, fenders to go over the tires, and a 4-liter frame bag. This package would normally run you $2,718 at full price, if it weren’t for the brand’s trend of offering savings on the bundles. While we did see it get a $308 bundle back in February, this model has otherwise only been getting $220 in free gear this year, but now, during this sale, we’re seeing a larger bundle than ever in 2025.
Anker’s SOLIX C300 power stations are portable 90,000mAh backup companions that start from $170 (up to 32% off)
By way of its official Amazon storefront, Anker is offering its SOLIX C300 DC Portable Power Station at $169.99 shipped, beating out the brand’s direct website pricing by $20. You’d have to pay $250 for this unit at full price regularly, though discounts in 2025 have seen it go as low as $150, which was last seen in July’s Prime Day Sale event, with things otherwise seen repeating to $170 since June. This is the third-lowest price we have tracked, giving you $80 off the going rate and landing $30 above the all-time low from Black Friday and Christmas sales.
Save up to 62% on DELTA 2 and DELTA Pro bundles, as well as dual solar panels, starting from $499 for 48 hours
Alongside launching its latest Home Backup Sale that is running through August 17, EcoFlow has also launched a 48-hour flash sale that is taking up to 62% off three offers, with things starting lowest on the DELTA 2 Portable Power Station that comes bundled with a smart extra battery for $899 shipped, which beats out its Amazon pricing by $50. This bundle would cost you $1,798 at full price directly from the brand, while we’ve seen it more regularly at $1,289 at Amazon. Discounts this year have seen it fall to $799 back in March, with things otherwise dropping between $849 and $999 during sales. You’re looking at a 50% markdown off its MSRP here and the third-lowest price of 2025, while the savings last through today and tomorrow.
Worx’s 20V JawSaw chomps through thick branches with a retractable blade at $101
Amazon is offering the best price of the year on Worx’s 20V JawSaw PowerShare Cordless Chainsaw at $101.40 shipped. Most of the past year we’ve seen this more unique chainsaw keeping up at a full $170 rate, which we saw drop to $130 during Black Friday and Christmas sales and more recently fell to $109 at the top of July. While it has dropped as far as $89 in past years, today’s deal comes in lower than we’ve seen in the last 12 months, giving you $69 off the going rate and beating out our previous mention by $8.
The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.
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Former UK Chancellor and current Coinbase adviser George Osborne says the UK is falling behind in the cryptocurrency market, particularly when it comes to stablecoins.