Fed’s preferred inflation gauge rises to 2.6% in June

The Federal Reserve’s preferred inflation measure rose in June as tariffs imposed by US President Donald Trump’s administration began to filter through to prices.

Official data released on Thursday showed the core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, climbed 2.8% year-on-year in June, matching the pace seen in May.

The headline PCE index, which includes volatile food and energy prices, increased 2.6% from a year earlier, up from a 2.4% rise the previous month.

On a monthly basis, both the core and headline PCE indexes advanced 0.3% in June, following a 0.2% gain in the headline index in May.

The data also showed personal spending rose by $69.9 billion last month, while personal savings totaled $1.01 trillion.

The increase reflected a $40.1 billion rise in services spending and a $29.9 billion uptick in goods spending.