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.”
Before that, there had been calls for festivals to reconsider booking the band over their political stances, and several have done, which prompted artists like Brian Eno, the Mystery Jets and CMAT to sign an open letter accusing Westminster and the British media of a campaign to “remove Kneecap from the public eye”.
They put their names to wording that said “in a democracy, no political figures… have the right to dictate who does and does not play at music festivals.”
So what’s the reality like for artists who are outspoken at a time when the world is so divided?
As some of the biggest names in music gathered in London for the Ivors, an annual celebration of songwriting, Self-Esteem – aka Rebecca Lucy Taylor – said the level of scrutiny can be “terrifying”.
‘The problem with the internet’
She told Sky News: “The problem with the internet is you say one thing, which gets scrutinised, and then you shit yourself, you really do… then you’re advised not to. And then you’re like ‘don’t advise me not to!’
“You second-guess anything you want to say any more… but any time I do that, I think ‘well that’s why you’ve got to say it then’.”
She said it can be frustrating that focus turns on to pop stars’ opinions instead of “the people doing the bad things”.
Former Little Mix singer Jade said: “To be a pop artist these days, it’s not just about music, it’s: ‘What’s your political stance?’
“I’ve always been quite vocal about those things, but in doing so you have even more of a scary spotlight on you, constantly assessing what your thoughts are as a human…it is scary.”
Trinidad-born London artist Berwyn, whose songs depict his struggles with UK immigration, says: “Silencing freedom of speech… is a road we don’t want to walk down.
“I’m not a politician, this is a very complicated issue, but I do absolutely believe in a human’s right to express themselves freely.”
But is that freedom of speech dependent on what side you’re coming from?
Image: Berwyn speaking to Sky News
‘Unethical investments’
Soon, an event called Mighty Hoopla will take place at Brockwell Park as part of its programme of six festivals this summer.
Artists performing at that are coming under increased pressure from pro-Palestine groups to quit because it’s owned by a company called Superstruct, which has links to an American investment firm called KKR.
Critics argue that any KKR-affiliated events should be a red flag to artists as campaigners claim it “invests billions of pounds in companies” that do things like “develop Israeli underground data centres”, and they say it has shares in companies that “advertise property on illegally occupied land in the West Bank”.
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Mighty Hoopla itself has said while it “cannot control investments made in our parent companies”, it wants to “state its clear opposition to KKR’s unethical investments”.
And Superstruct – which puts on over 80 festivals around the world – says while horrified by the crisis in Gaza: “We are aware that there is a significant amount of debate… around our festivals.
“Our owners, made up of our promoters and several investment firms, support us to achieve the highest standards… fans and artists rightly expect.”
They insist that operationally, Superstruct is independently run and all its “revenue and profits… remains entirely within our business… towards the ongoing development… of our festivals.”
Even deciding where to perform can have political connotations for musicians these days.
As Tom Gray, a founding member of the rock band Gomez, now chair of the Ivors, explains: “The amount of commercial interest required to get a young artist into the public eye means they have to keep their head down a lot and that’s a terrible shame.
“It’s not just artistic expression, but personal human expression is one of the fundamental things that allows people to feel they have agency.”
RALEIGH, N.C. — Sam Bennett scored one of his two goals in Florida’s three-goal first period, Sergei Bobrovsky made 17 saves and the Panthers beat the Carolina Hurricanes 5-0 on Thursday night to take a 2-0 lead in the Eastern Conference final.
Bennett scored a second time by skating in to clean up an attempt at the right post in the final minute of the second period to make it 4-0, ending a long shift in Carolina’s end prolonged by Hurricanes defenseman Brent Burns being stuck on the ice after breaking his stick. Aleksander Barkov added a goal midway through the third as punctuation.
Bobrovsky had his third shutout of the playoffs this year and the sixth of his career, with Florida’s defense smothering a Hurricanes team that typically peppers the net with shots but found little daylight.
Florida had already ripped home-ice advantage away Tuesday night with a 5-2 win, the opener in a rematch of the 2023 conference final swept by the Panthers with four one-goal wins. Florida only tightened its grip on the series with this one and now heads back south to host Game 3 on Saturday night.
On the other bench, the Hurricanes found themselves on the receiving end of a crushing loss by a jarringly lopsided margin. And it marked their 14th straight loss in a conference final, going back to sweeps in 2009, 2019 and the ’23 tilt with Florida.
The Hurricanes managed just three first-period shots and just seven through two periods, prompting a typically rowdy home crowd to vent its frustrations with two chants of “Shoot the puck! Shoot the puck!” Carolina had a brief boost when Sebastian Aho scored on a turnover in the first minute of the second period to cut the deficit to 3-1.
But Florida successfully challenged that the play was offsides. It turned out Burns’ stick-check on Tkachuk near the blue line forced the puck back into the zone and right to Aho in the slot for the finish.
By the third period, Carolina had pulled veteran Frederik Andersen from net and went with backup Pyotr Kochetkov for the final period.
It wasn’t all great news for Florida. Veteran forward Sam Reinhart was knocked from the game in the first period after taking a hit from Aho in the left leg, causing Reinhart’s knee to bend awkwardly.
HERNING, Denmark — Nick Olesen scored with 49 seconds left as Denmark stunned Canada 2-1 at the ice hockey world championship Thursday to advance to the semifinals.
“I have no words, it’s unbelievable,” Olesen said after Denmark reached the last four for the first time. “The fans here were cheering for us the whole game and they helped us get the win. It’s crazy.”
Denmark, in the sold-out arena in Herning, had tied it with 2:17 remaining when Nikolaj Ehlers scored through traffic in only his second game at the tournament following his Winnipeg Jets being eliminated from the NHL playoffs.
The Danes had pulled goaltender Frederik Dichow for the extra attacker before Ehlers struck.
Canada outshot Denmark 30-11 in the first two periods but couldn’t solve Dichow, who made 39 saves in all, until 5:17 into the third when captain Sidney Crosby fed Travis Sanheim to score into the roof of the net. Canada was outshot 22-10 in the final period, though.
Denmark has only two NHL players at the worlds, while Canada has only two who don’t play at the NHL level.
“I’m disappointed,” Crosby said. “We got better as the tournament went on. I don’t think tonight was necessarily our best, but we still found a way to give ourselves a lead … but it turned pretty quick.”
Crosby returned to the worlds for the first time since 2015, when he captained Canada to gold. He was expected to do it again with teammates like Nathan MacKinnon.
Canada is the most successful nation at the tournament with 28 titles but has finished empty-handed in the past two editions after it was beaten by Sweden in the bronze medal game last year.
It was only the second win for Denmark over Canada at the worlds.
The semifinals are set for Saturday: Denmark will play Switzerland; and the United States will face Sweden.
Earlier on Thursday, the U.S. advanced by beating Finland 5-2 backed by Conor Garland‘s two power-play goals
Trailing 2-1 in the middle period, the Americans needed 71 seconds to turn things around when defenseman Zeev Buium put home a rebound at 23:53 before Garland’s second goal restored the U.S. lead.
“I really liked how we stayed with it and built as the game wore on,” U.S. head coach Ryan Warsofsky said. “We got off to a bit of a slow start but really found our game as time wore on. I give our guys a lot of credit as they beat an excellent hockey team today.”
Garland had given the U.S. a 1-0 lead 4:50 into the game when he received a cross-ice pass from Logan Cooley to beat goalie Juuse Saros from the right circle.
Finland tied it at 1-1 on Eeli Tolvanen‘s power-play goal. Patrik Puistola scored from the slot on another power play 7:46 into the second period for Finland to take a 2-1 lead.
The Americans added two more goals in the third. Shane Pinto scored the fourth 5:52 into the final period and captain Clayton Keller finished the scoring into an empty net.
The U.S. team hasn’t won a medal since taking bronze in 2021. The Finns have been waiting for a medal since they won gold in 2022.
Sweden delighted the home crowd in the Avicii Arena in Stockholm by eliminating defending champion Czechia with a 5-2 victory.