The U.S. Core PCE Price Index rose 3.3% year-over-year in June 2026, down slightly from the 3.4% annual pace recorded in May.
The data, released this morning by the U.S. Bureau of Economic Analysis (BEA), showed inflation cooling marginally closer to the Federal Reserve's target.
📊 Key Inflation Metrics
- Core Monthly Index: Increased 0.1% month-over-month in June, following a 0.3% rise in May.
- Headline Annual Index: Dropped sharply to 3.7% year-over-year, down from 4.1% in May, heavily driven by falling retail gas prices.
- Headline Monthly Index: Decreased 0.1% from the previous month, marking a reversal from May's 0.5% jump.
🛍️ Consumer Spending & Income
- Personal Consumption Expenditures: Climbed 0.3% in June (a $65.2 billion increase), driven mostly by an expansion in services spending.
- Real PCE: Grew 0.4% month-over-month when adjusting for inflation.
- Personal Income: Rose 0.2% ($54.9 billion), led primarily by private sector wages and asset compensation.
- Personal Saving Rate: Hit 2.7% for the month, representing $646.1 billion in total savings.
If you are tracking economic policy, I can break down how this affects the Fed's upcoming interest rate trajectory or provide a comparison to the June Consumer Price Index (CPI) data.
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