Inflation declined to 3% in June, according to key gauge watched by Fed
Zachary Halaschak
Inflation fell to a 3% annual rate in June, as measured by the gauge favored by the Federal Reserve, a 0.8 percentage point decline from the month before and the lowest reading since September 2021.
The decline in the personal consumption expenditures price index reported Friday morning by the Bureau of Economic Analysis is another key indicator that inflationary pressures are abating in the face of the Fed’s campaign to slow economywide spending by hiking interest rates.
While still running hotter than is healthy (the central bank’s goal is 2% annual price growth), the inflation rate in the latest report is good news for the economy and for the Biden administration, which has recently touted positive economic developments as proof that President Joe Biden's agenda is working.
Core PCE inflation, a measure of inflation that strips out energy and food prices and is generally less volatile, is clocking in at a 4.1% year-over-year rate.
more
https://www.washingtonexaminer.com/policy/economy/inflation-declined-3-percent-june-pce-gauge-fed