US PCE rises 0.2pc in July

The Federal Reserve Bank's preferred inflation gauge rose in July, according to the Commerce Department, in line with preliminary estimates.

The personal consumption expenditures index increased by 0.2% month-on-month or 2.5% on a year-on-year basis, exactly in line with consensus estimates.

Stripping out volatile food and energy prices, core PCE also increased 0.2% for the month but was 2.6% higher on the year, slightly softer than the 2.7% estimate.

Reporting by Iain Gilbert at Sharecast.com