The key inflation indicator in the United States is rising, while consumer spending is nearly stagnant.

BlockBeats News, July 31st: The Federal Reserve's preferred core inflation gauge accelerated in June, reaching one of the fastest paces this year, while consumer spending barely grew, underscoring factors causing policymakers to diverge on interest rate direction. Data released on Thursday showed that the "Core Personal Consumption Expenditures (PCE) Price Index," which excludes food and energy prices, rose by 0.3% from May. It increased by 2.8% year-on-year, reflecting limited progress in curbing inflation over the past year.

The data indicated that inflation-adjusted consumer spending saw a slight uptick in June, following a decline in May. These data suggest that the tug-of-war in the economy has led Fed officials to diverge on monetary policy direction. On one hand, inflation progress has essentially stalled, and central bank officials are concerned that President Trump's tariffs could bring greater upward pressure on prices. On the other hand, the reduction in consumer spending due to a soft job market could lead to an overall economic slowdown. (Jinshi)