June PCE Inflation Measure Falls Slightly as Energy Prices wobble
The Federal Reserve's preferred inflation metric slipped in June, with the PCE index dropping 0.1% month-over-month while remaining 3.7% higher than a year earlier.
June's personal consumption expenditures data showed a modest monthly decline, reflecting slower price growth amid volatile energy markets. Year-over-year, the index stayed up 3.7%, matching economists' forecasts. Core PCE, which strips out food and energy, rose 0.1% from the previous month and 3.3% from a year ago, with the monthly gain falling short of the 0.2% expected. Both the headline and core figures aligned with the consensus of the LSEG poll.
Why it matters
The reading guides the Federal Reserve's outlook on inflation and future monetary policy decisions.
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