Fed’s Favored Price Gauge Rises at Mild Pace, Spending Holds Up
- Core PCE prices and real consumer spending each advance 0.2%
- Measures of wage growth cooled in June as saving rate fell
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The Federal Reserve’s preferred measure of underlying US inflation rose at a tame pace in June and consumer spending remained healthy, encouraging signs for officials looking to cool inflation without breaking the economy.
The so-called core personal consumption expenditures price index, which strips out volatile food and energy items, increased 0.2% from May. From a year ago, it rose 2.6%, according to Bureau of Economic Analysis data out Friday.