The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in July after climbing 0.3 percent in June. The annual rate of growth by the PCE price index in July came in unchanged from June at 2.6 percent.

The modestly monthly increase by consumer prices came as prices for services climbed by 0.3 percent, more than offsetting a 0.1 percent dip in prices for goods.

Excluding food and energy prices, the core PCE price index rose by 0.3 percent in July, matching the increase seen in June. The annual rate of growth by the core PCE price index ticked up to 2.9 in July from 2.8 percent in June.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

The report said personal income climbed by 0.4 percent in July after rising by 0.3 in June.

Disposable personal income, or personal income less personal current taxes, also increased by 0.4 percent in July after climbing by 0.3 percent.

The Commerce Department said personal spending grew by 0.5 in July following a 0.4 percent increase in June.

Excluding price changes, real personal spending rose by 0.3 percent in July after inching up by 0.1 percent in June.

The report said personal saving as a percentage of disposable personal income in July came in unchanged from the previous month at 4.4 percent.

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