US Inflation Eases in June as Consumer Prices Decline
The U.S. inflation rate eased slightly in June, with the Federal Reserve's preferred measure—the personal consumption expenditures (PCE) price index—falling by 0.1% for the first time in several months. This decline brought annual PCE inflation to 3.7%, down from 4.1% in May and matching market expectations. Core PCE, which excludes volatile food and energy prices, also moderated with a monthly increase of just 0.1%. Annual core inflation slowed slightly to 3.3%, consistent with forecasts. The data suggests continued progress toward the Fed's long-term price stability goals but does not signal an immediate shift in monetary policy. Separate economic indicators showed that while consumer spending and personal income grew, both at a slower pace than previously seen, overall GDP growth for Q2 2026 came in below expectations. The U.S. economy expanded by 1.5% annually during the second quarter, down from 2.1% in the first quarter.
Topics: consumer prices Federal Reserve PCE index US inflation