Fed’s preferred inflation gauge shows price increases accelerated in June amid tariff uncertainty
The latest reading of the inflation indicator preferred by the Federal Reserve showed the accelerating price increases in June as the inflation remained above 2% target.
The “Core” Personal Consumption Expenditures (PCE) index, which eliminates food and energy costs and closely monitored by the Central Bank, increased by 0.3% in parallel with the expected 0.2% increase in May.
Annually, basic prices increased by 2.8%, above 2.7% expected by economists and is suitable for May’s reading. The 2.8% reading of May was revised higher than an increase of 2.7% at the beginning.
Only one day after the Fed chose to keep interest rates fixed at the Fed’s July meeting, the FED President Jerome Powell stressed that any tariff effect on inflation was still “first days” and is still a “long way to go” before the full effects become clear.
Read more: How does the Fed rate decision affect your bank accounts, loans, credit cards and investments?
Data in other parts of the version showed mixed symptoms of slowing economic growth activity. Real personal expenditures that adapt to inflation increased by 0.3% below estimates for an increase of 0.3%. In May, real personal expenditures decreased by 0.3%. Meanwhile, after the previous month decreased by 0.4%, personal income increased by 0.3%.
Josh Schafer is a Yahoo Finance reporter. Follow him on x @_joshschafer.
Click here for the latest economic news and indicators that will help inform your investment decisions
Read the latest finance and business news from Yahoo Finance
