The latest data showed that the U.S. PCE price index rose 0.2% in July from a year earlier and 2.5% from a year earlier, in line with economists' expectations.

As inflationary pressures slow down, the market expects the Fed to increase the likelihood of a rate cut in September.

U.S. June PCE data showed signs of economic moderation, pulling up market expectations for a Fed rate cut.

According to two price reports that exceeded expectations this week, the inflation indicator favored by the Federal Reserve, PCE, is expected to achieve its smallest increase since November last year. The index will be released later this month.

The pace of inflation may be slowly weakening in April's PCE report, which could pave the way for the Federal Reserve to cut interest rates at the end of the year.