WASHINGTON: A key US inflation gauge continued to climb last month and income shot higher as the economy bounces back from last year's downturn, according to government data released Friday.

The personal consumption expenditures (PCE) price index rose at a rapid 4.2 percent pace in July compared to the same month in 2020, slightly faster than the rate in June, the Commerce Department said.

Meanwhile, income rose 1.1 percent compared to the month prior, far above analysts' expectations.