U.S. July core PCE price index rose 3.3% year-on-year and 0.2% month-on-month, as sticky inflation divided Federal Reserve officials on the eve of the Jackson Hole meeting.

Data released by the U.S. Department of Commerce showed that the core Personal Consumption Expenditures (PCE) price index rose 3.3% year-on-year in July, flat with June and in line with expectations. Month-on-month, it increased by 0.2%, slightly higher than June's 0.1%, and also in line with expectations. This inflation data, released on the eve of the Federal Reserve's annual Jackson Hole Economic Symposium, reinforced the internal divisions within the Federal Reserve regarding whether further interest rate hikes are needed. New York Fed President John Williams previously stated that if the monthly PCE increase remains at 0.2% or lower, it would indicate that inflation will naturally fall back to the Federal Reserve's 2% target. Boston Fed President Susan Collins said on Tuesday that she favors keeping interest rates unchanged, but if there is no evidence of declining inflation, a rate hike "soon" would be appropriate. Federal Reserve Chairman Kevin Warsh is scheduled to deliver his first speech since taking office at the Jackson Hole meeting on Friday.