Prior was 3.3%Headline y/y 3.7% vs 3.6% expected (3.7% prior)Headline m/m +0.2% vs +0.1% expected (-0.1% prior)Core PCE (excluding food & energy):Core m/m +0.2% vs +0.2% expectedPrior +0.1%PCE services excluding energy and housing % vs +0.1% priorConsumer spending and income for July:Personal income +0.4% vs +0.2% expected. Prior month +0.2%Personal spending +0.2% vs +0.1% expected. Prior month +0.3%Real personal spending 0.0% vs +0.4% priorThis is the data highlight of the week and the stakes are notable with the market still pricing in a 35% chance of a Fed rate hike on September 16. Lately, the data has run in a more dovish direction but Fed officials are worried about persistent inflation, that's why the core reading in today's number matters. Ultimately, the Fed has missed its inflation target of 2% for five years and that's where new Chairman Kevin Warsh has planted his flag. With headline at 3.6%, data center spending booming and the Iran war continuing, he has work to do.As for the numbers, they ran a touch hot on the headline but there are no big surprises here. This article was written by Adam Button at investinglive.com.