U.S. core inflation, measured by the core personal consumption expenditures (PCE) price index excluding food and energy, rose 2.9 percent year-over-year in July, the highest level since February, the Bureau of Economic Analysis (BEA) reports.
Core inflation climbed 0.3 percent from June, in line with Wall Street forecasts.
As the index has not risen as much as expected, a rate cut may come in September, local media reported.
The PCE price index, a key measure of inflation in the U.S. economy, is defined by the BEA as a measure of the prices that people living in the United States, or those buying on their behalf, pay for goods and services.