Fed's preferred annual inflation indicator unchanged at 2.6% in June, above 2.5% estimates
On monthly basis, Core PCE price index gains pace to 0.2% in June, from 0.1% in May, coming in line with expectations
By Ovunc Kutlu
ISTANBUL (AA) - The US Federal Reserve's preferred annual inflation indicator remained unchanged at 2.6% in June, according to Commerce Department figures released Friday.
The figure came in slightly higher than market expectations of 2.5%, while the core personal consumption expenditures (PCE) price index annually rose 2.6% in May.
On a monthly basis, the core PCE price index increased 0.2% in June, gaining pace from a 0.1% month-on-month increase in May, and came in line with market estimates.
The PCE price index, which includes food and energy prices, annually rose 2.5% in June, slightly slowing from a 2.6% annual gain in May, also coming in line with expectations.
That index, on a monthly basis, increased 0.1% in June, after remaining unchanged in May, and coming also in line with estimates.
The slight gains in PCE and core PCE figures are not expected to change investors' anticipation that the Fed's first interest rate cut is widely expected to come in September.
The Fed has made a total of 11 interest rate increases between March 2022 and July 2023 to tame the record inflation, carrying the federal funds rate to the 5.25%-5.5% target range – the highest in 22 years.
The US central bank skipped four rate hikes last year, and four more this year.
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