Core inflation shows the annual rate of increase in consumer prices in the United States, excluding energy and food prices.
However, compared with the previous month, consumer prices in the US rose by 0.2 percent in July, beating expectations of 0.1 percent.
PCE inflation is seen by the US Federal Reserve (Fed) as the most important measure of price increases when making decisions about future policy rates. Unlike the CPI measure of inflation, which is based on a basket of goods, PCE inflation is calculated on what is actually consumed.
The inflation figures come ahead of Friday's speech by Fed Chair Kevin Warsh at the Jackson Hole Symposium in the United States, which will be Warsh's first major speech since taking over from Jerome Powell earlier this year.
