The Commerce Department on Thursday reported that the\u00a0personal consumption expenditures (PCE)<\/a> index rose 0.3% on a monthly basis and 2.6% from a year ago, with the headline figure above the estimate of economists polled by LSEG. Those figures mark accelerations from last month’s readings of 0.1% and 2.3%.<\/p>\n Core PCE, which excludes volatile food and energy prices, was up 0.3% on a monthly basis in June and 2.8% from a year ago, with the annual figure coming in above estimates. On an annual basis, core PCE ticked higher from 2.7% last month, while the monthly figure was also up from the 0.2% reading in May.<\/p>\n Federal Reserve policymakers are focusing on the PCE headline figure as they try to bring inflation back to their long-run target of 2%, though they view core data as a better indicator of inflation. Headline PCE rose from 2.3% to 2.6% in June, while core PCE also rose from 2.7% to 2.8%.<\/p>\n FEDERAL RESERVE HOLDS KEY INTEREST RATE STEADY FOR FIFTH STRAIGHT MEETING DESPITE TRUMP’S PRESSURE<\/a><\/p>\n Prices for goods<\/a> were up 0.6% in June from a year ago. Durable goods rose 0.9% from last year and nondurable goods were up 0.5% over that period.<\/p>\n Services prices were 3.5% higher in June when compared with last year.<\/p>\n Wages and salaries increased 0.1% on a monthly basis in June, which was the slowest monthly growth since at least November.<\/p>\n The personal savings rate<\/a> as a percentage of disposable personal income was 4.5%, unchanged from last month.<\/p>\n FEDERAL RESERVE INDEPENDENCE AT RISK FROM TRUMP’S PRESSURE CAMPAIGN, J.P. MORGAN WARNS<\/a><\/p>\n Both headline and core PCE inflation rose faster than expected on an annual basis. (Howard Schnapp\/Newsday RM via Getty Images \/ Getty Images)<\/p>\n The Commerce Department’s PCE report comes a day after the central bank held interest rates steady as policymakers are on the lookout for signs of a rebound in inflation driven by President Donald Trump’s<\/a> tariffs.<\/p>\n The Federal Reserve<\/a> left its benchmark federal funds rate unchanged for the fifth straight meeting, holding steady at a range of 4.25% to 4.5%.<\/p>\n Fed Chair Jerome Powell<\/a> said that policymakers are in a good position to wait and see how tariffs impact the economy and to respond quickly if the economy shows signs of a weakening labor market or inflation starts to rise markedly.\u00a0<\/p>\n Powell noted that “higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen,” explaining that tariffs could be a one-time shift in the price level or could lead to more persistent inflation.<\/p>\n![\"Grocery](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/07\/consumers-grocery-store-aisle.jpg\")
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