FOREX-US dollar gains after inflation data

NEW YORK, Aug 30 (Reuters) - The U.S. dollar gained on Friday after data showed a key inflation measure came in line with expectations, while personal spending and income increased, reinforcing expectations that the Federal Reserve will like cut interest rates by a smaller 25 basis points month.

The personal consumption expenditures (PCE) price index rose 0.2% last month, in line with expectations, after an unrevised 0.1% advance in June, data showed. In the 12 months through July, the PCE price index increased 2.5%, matching June's gain.

Consumer spending was also 0.5% higher last month after expanding 0.3% in June.

The dollar extended gains against the yen after the data to 145.72 yen, up .5% JPY=EBS, while the dollar index was up 0.2% at 101.55 =USD.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Ros Russell)

((gertrude.chavez@thomsonreuters.com; 646-301-4124))