Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, stayed unchanged at 0.5% in June, the US Bureau of Economic Analysis reported on Friday. On a yearly basis, the PCE Price Index remained steady at 4%.
More importantly, the annual Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, edged higher to 3.5% in June from 3.4% in May, coming in lower than the market expectation of 3.7%.
Further details of the publication revealed that the Personal Income increased by 0.1% in the same period while Personal Spending expanded by 1%, compared to analysts’ estimate of 0.7%.
The initial market reaction to this report was largely muted and the US Dollar Index was last seen trading virtually unchanged on the day at 91.89.