WASHINGTON, DC – Today, the Joint Economic Committee released its Monthly Expenditures Update for July. From June to July, headline personal consumption expenditures (PCE) price index inflation was 0.16 percent, below the 0.40 percent from May to June. Core PCE price index inflation, which excludes food and energy prices, was 0.25 percent, up from the 0.13 percent in June.

In the same period, spending and savings increased slightly. Real PCE increased by 0.01 percent, or $1.26 billion. Real PCE on all services increased by 0.29 percent, or $32.04 billion. Real PCE on all goods decreased by 0.61 percent, or $35.48 billion. The nominal personal savings rate increased by 0.4 percentage points to 3 percent.

From July 2025 to July 2026, headline PCE price index inflation was 3.70 percent, up from 3.67 percent in June and higher than the Federal Reserve’s target of 2 percent. Core PCE price index inflation was 3.34 percent, slightly higher than 3.29 percent in June.

Month-over-month, headline personal income increased by 0.43 percent, or $115.11 billion, while real disposable personal income per capita increased by 0.35 percent, which means that after tax income rose more quickly than prices.

For the full Monthly Expenditures Update, visit: https://www.jec.senate.gov/public/index.cfm/republicans/expenditures-update

Additionally, the Joint Economic Committee released its Gross Domestic Product (GDP) Update of Q2 2026, Second Estimate. Real GDP growth from 2026 Q1 to 2026 Q2 increased by 1.48 percent, slowing from the 2.09 percent in the first quarter. Current-dollar GDP increased by 8.02 percent or $620.345 billion, to a level of $32.486 trillion, the current size of the U.S. economy.

For the full GDP Update, visit: https://www.jec.senate.gov/public/index.cfm/republicans/gdp-update

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