The Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures (PCE) Index, excluding food and energy, rose to 4.2% in July, up from 4.1% in June. On a headline basis, including all categories, PCE inflation increased to 3.3% year over year in July. Despite the rise in inflation, personal consumption expenditures also jumped at a robust pace in July, indicating strong real demand. Fed Chair Jerome Powell, speaking at the Jackson Hole Economic Symposium, acknowledged that inflation remains too high, signaling that the central bank is committed to bringing inflation back to its 2% target. Powell also warned investors of a potential "higher for longer" period for interest rates. While the recent data suggests that the economy and job market may be slowing, the increase in inflation rates underscores the need for the Fed to remain vigilant. The central bank is closely monitoring core prices to gauge the trajectory of inflation and determine appropriate policy measures. Despite the easing inflationary pressures, the Fed is prepared to raise rates further if necessary to bring inflation down to its target.