Fed's favored inflation gauge showed prices pulled back in June
Fox Business • • business
Key Points:
- The Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) index, fell 0.1% in June and rose 3.7% year-over-year, aligning with economist expectations.
- Core PCE, which excludes food and energy prices, increased 0.1% monthly and 3.3% annually, slightly below monthly forecasts but matching yearly predictions.
- Federal Reserve policymakers remain focused on reducing headline PCE inflation to their 2% target, noting a decline in headline PCE from 4.1% to 3.7% and core PCE from 3.4% to 3.3% compared to May.
- Economic indicators show goods prices rose 3% annually and 0.7% monthly, while services prices increased 2.3% annually and 0.3% monthly; the personal savings rate dropped slightly to 2.7% in June.
- Experts highlight that recent inflation data may be complicated by volatile energy prices, with the Fed expected to remain patient and vigilant amid ongoing risks of inflationary pressures.
