US PCE inflation in July 2026, above expectations

US PCE inflation for July 2026 exceeded expectations, driven by a 15% surge in energy costs and strong consumer demand. These persistent inflationary pressures and sticky inflation may complicate monetary policy, potentially prompting the Fed to adopt hawkish policies and delay rate adjustments. Such developments are expected to impact financial markets, alter rate expectations, and affect household budgets while influencing oil market volatility. The combination of high energy prices and demand continues to sustain overall inflationary trends.