US June Core PCE Price Index Rises 3.3% From a Year Earlier
Summary
- The personal consumption expenditures (PCE) price index rose 3.7% from a year earlier in June and fell 0.1% from the previous month, signaling easing inflation pressures.
- The core PCE price index excluding food and energy rose 3.3% from a year earlier, matching economists’ estimates, though the pace of increase slowed.
- US second-quarter gross domestic product (GDP) growth was 1.5% at an annualized rate, below both the first-quarter reading and economists’ forecasts.
Forecast Trend Report by Period
Second-Quarter GDP Growth Slows to 1.5%, Missing Estimates
US inflation pressures eased in June as consumer prices slowed on both a monthly and annual basis. Second-quarter gross domestic product growth also came in below expectations.
The Commerce Department said on July 30 that the personal consumption expenditures price index rose 3.7% in June from a year earlier, slowing from 4.1% in May. The PCE index fell 0.1% from the previous month. Lower oil prices in June appear to have contributed to the slowdown in PCE inflation.
The core PCE price index, which excludes food and energy, rose 3.3% from a year earlier. That matched economists’ estimates compiled by Dow Jones and was down from 3.4% in May. On a monthly basis, the index rose 0.1%, below expectations.
US GDP grew at an annualized 1.5% in the second quarter, according to the advance estimate released the same day. That was down from 2.1% in the first quarter and below economists’ forecast of 1.8%. The Commerce Department said private consumption increased in the second quarter, but government spending declined, resulting in slower growth than in the previous quarter.
Son Ju-hyung, Hankyung.com reporter handbro@hankyung.com
Korea Economic Daily
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