The Federal Reserve’s preferred inflation measurement rose more than expected in June, as the impact of tariffs imposed by the Trump administration on prices began to show.
According to federal data released Thursday, the core personal consumption expenditures (PCE) price index—the Fed's preferred inflation measure—rose 2.8% year-over-year (YoY) in June, compared to the same pace in May.
The non-core PCE index, which excludes volatile items such as food and energy, rose 2.6% YoY last month, after expanding 2.4% in May.
On a monthly basis, the core and headline PCE indices rose 0.3%, following a 0.2% increase in May.
It indicated that PCE increased by $69.9 billion last month, with personal savings reaching approximately $1.01 trillion.
Moreover, there was a $40.1 billion increase in spending on services and a $29.9 billion rise in spending on goods, the data showed.
AI Summary
Comments Analysis: