Fed's preferred inflation gauge shows prices rose more than expected in June
07/26/2024 19:35
The latest reading on the Fed Reserve's preferred inflation gauge comes just days before the Fed's next policy meeting as investors look for clues on when interest rate cuts might begin,
The latest reading of the Fed's preferred inflation gauge showed prices increased more than expected in June.
The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Federal Reserve, rose 2.6% over the prior year in June; below economists estimate a 2.5% increase and unchanged from the month prior.
Core PCE rose 0.2 % from the prior month, in line with Wall Street's expectations for 0.2% and faster than the 0.1% increase seen in May.
The report follows recent promising inflation prints. The most recent reading of the Consumer Price Index (CPI) showed core prices climbed 0.1% from the prior month, lower than economists' estimates.
Ahead of Friday's PCE release, Federal Reserve chair Jerome Powell noted recent inflation data "add somewhat to confidence" inflation is moving toward the Fed's 2% target. The Fed's next monetary policy decision will come on July 31.
Markets widely expect the Fed will hold interest rates steady at its July meeting before initiating its first interest rate cut in September.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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