US June Core PCE rises 2.8%… Exceeds expectations

JOON HYOUNG LEE

Summary

The US June core PCE price index was announced to have risen by 2.8%, exceeding expert forecasts.
This indicator is said to be a key gauge the Fed values when making benchmark rate decisions.
This release was the first inflation data published after the FOMC rate hold, attracting strong investor interest.

The Personal Consumption Expenditures (PCE) price index, a key indicator influencing the United States benchmark interest rate cuts, increased in June to surpass market expectations.

The United States Department of Commerce announced that the June PCE price index rose 2.6% year-on-year. This figure exceeds the market consensus (2.5%) by 0.1 percentage points. Compared with May (2.4%), the rise widened by 0.2 percentage points.

The core PCE price index, which excludes volatile items such as food and energy, increased by 2.8% over the past year. This is the same as the previous month (2.8%), but it surpasses the expert forecast (2.7%) by 0.1 percentage points.

Core PCE is the indicator Fed values most when deciding the benchmark interest rate, and remains above the price target of 2%. This release drew market attention, as it was the first inflation figure published since the Fed left rates unchanged at the July Federal Open Market Committee (FOMC) meeting.

BTC