Morningstar

June PCE Report: PCE Inflation Index Up 2.6%, Stronger Than Expected

The PCE Price Index increased 0.3% in June

Collage illustration of a basket filled with groceries, featuring a dollar icon and a magnifying glass.

The June Personal Consumption Expenditures Price Index posted a stronger-than-expected increase, up 2.6% from year-ago levels. Economists forecast that the PCE index would rise 2.5%.

When volatile food and energy costs are factored out, the Federal Reserve’s preferred measure of inflation increased 2.8% from one year ago, above expectations. Economists forecast that the core PCE inflation index would rise 2.7%.

The PCE Price Index increased 0.3% from month-ago levels. Excluding food and energy, the PCE Price Index also increased 0.3%.

June PCE Inflation Report Highlights

  • The PCE Price Index rose 0.3% in June, above the FactSet consensus forecast for a 0.2% increase and following an increase of 0.14% in May.
  • Core PCE rose 0.3% in June, in line with forecasts and following an increase of 0.18% in May.
  • The PCE Price Index year over year rose 2.6% in June, above forecasts for a 2.5% increase and following an increase of 2.5% in May.
  • Core PCE year over year rose 2.8% in June, above forecasts for a 2.7% increase and following an increase of 2.7% in May.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

Sponsor Center