US RATE FUTURES-Ideas of Fed hike slip on July PCE

CHICAGO, Aug 29 (Reuters) - U.S. short-term interest rate futures inched higher on Friday, trimming the implied chances for Federal Reserve rate increases in 2009 after news that U.S. personal income fell unexpectedly in July.

Perceived chances for a rate increase by year-end slipped to 28 percent from 30 and prospects for a Fed hike during the first quarter of 2009 dipped to 78 percent from 90.

U.S. personal income fell by 0.7 percent in July after being forecast to be unchanged. (Reporting by Ros Krasny; Editing by James Dalgleish)