Switzerland doesn't like to be known as money-laundering land and has new rules to make it harder

to hide, ill-gotten gain.

I'm David Brancaccio.

First using the Federal Reserve's preferred measure of inflation just out, prices in America

went up 3.3% in the year through July.

That's an increase when annualized from June.

This is the personal consumption expenditures index, and if you know what to look for, there's

evidence of stickiness for inflation.

The sort likely to linger in a corrosive way.

Diane Swank is the chief economist at the Audit Tax and Advisory firm KPMG.

Welcome.

Good morning.

All right.

I look at this PCE core data and only see a little bit of an increase from June into July.

How do you look at it?

You have to squint, but you have to look at what's going on both in goods and services.

Now the service sector is a dominant sector in the U.S. economy, and it's also less sensitive

to interest rate hikes than big ticket items like vehicle prices, appliances, anything

you have to finance out there.

We're sure enough, goods prices actually declined during the month, and we spent a lot

more money.

We were out spending money like crazy in the month of July, and our saving rate plummeted

...