June PCE Inflation Eases as Energy Prices Fall

The US Commerce Department released data showing that the Personal Consumption Expenditures (PCE) price index rose 3.7% year-on-year in June, down from 4.1% in May.

This marked a decline of 0.1% month-on-month, the first monthly decrease since April 2020, driven largely by falling energy prices.

The core PCE price index, which excludes food and energy prices, rose 0.2% month-on-month in June, down from 0.3% in May, with a year-on-year growth rate of 3.3%, down from 3.4%.

This slowdown in core inflation suggests that price pressures on US goods and services have eased somewhat, but remain above the Federal Reserve's 2% long-term target.