Key Inflation Gauge Posts Fastest Annual Price Gain in 30 Years

Customers shop for produce at a supermarket in Chicago on June 10, 2021. Scott Olson/Getty Images

The Federal Reserve’s preferred inflation gauge, the so-called core personal consumption expenditures (PCE) price index, vaulted in the 12 months through July to levels not seen in 30 years.

The Commerce Department said in an Aug. 27 statement that core PCE rose by 3.6 percent over the year in July, matching June’s level, which was an increase from 3.5 percent in May and 3.1 percent in April.