The latest reading of the Federal Reserve’s preferred inflation gauge showed price increases accelerated in June as inflation remained above the Fed’s 2% target.
The “core” Personal Consumption Expenditures (PCE) index, which strips out food and energy costs and is closely watched by the central bank, rose 0.3% from the prior month, in line with the 0.3% economists had expected and above the 0.2% increase seen in May.
On an annual basis, core prices rose 2.8%, above the 2.7% economists had expected and in line with May’s reading. May’s 2.8% reading was revised higher from an initially reported 2.7% increase.
The release comes just one day after the Fed opted to hold interest rates steady at its July meeting, with Fed Chair Jerome Powell stressing that it’s still the “early days” of any tariff impact on inflation and that there is still “a long way to go” before the full effects will be clear.
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
Elsewhere in the release, data showed mixed signs of slowing economic growth activity. Real personal spending, which adjusts for inflation, rose 0.3%, below estimates for a 0.4% increase. Real personal spending decreased 0.3% in May. Meanwhile, personal income rose 0.3% after falling 0.4% the month prior.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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