The Federal Reserve's favored inflation gauge, the Personal Consumption Expenditures (PCE) price index, decreased to 3.7% for the month of June. This figure aligned precisely with previous market forecasts.
Simultaneously, the core PCE metric, which excludes volatile food and energy costs, dropped to 3.3%. Despite this decline, the current core reading represents the second-highest level recorded since October 2024.
Current inflationary pressures in the United States remain significantly elevated, persisting at nearly twice the Federal Reserve's established 2.0% long-term target.