Inflation showed further signs of cooling in June, according to a gauge released Friday that the Federal Reserve follows closely.
Inflation showed further signs of cooling in June, according to a gauge released Friday that the Federal Reserve follows closely.
The personal consumption expenditures price index excluding food and energy increased just 0.2% from the previous month, in line with the Dow Jones estimate, the Commerce Department said.
So-called core PCE rose 4.1% from a year ago, compared with the estimate for 4.2%. The annual rate was the lowest since September 2021 and marked a decrease from the 4.6% pace in May.
Headline PCE inflation including food and energy costs also increased 0.2% on the month and rose 3% on an annual basis. The yearly rate was the lowest since March 2021 and moved down from 3.8% in May.
Goods prices actually decreased 0.1% for the month while services rose 0.3%. Food prices also fell 0.1%, while energy increased 0.6%.
Markets reacted positively to the report, with stock market futures pointing higher and Treasury yields headed lower.
