Core PCE price index in US annually rises 4.8% in June

By Ovunc Kutlu

ANKARA (AA) - The core personal consumption expenditures (PCE) price index, the US Federal Reserve's preferred and most reliable inflation indicator, increased 4.8% annually in June, according to the latest data released on Friday.

The market expectation was a 4.7% increase, the same as in May.

On a monthly basis, it gained 0.6% in June, coming above the market estimate of a 0.5% increase, and climbing higher than the 0.3% monthly gain recorded in May.

The PCE price index, which includes food and energy prices, annually rose 6.8% last month, after gaining 6.3% the previous month.

On a monthly basis, the PCE price index increased 1% last month, after rising 0.6% the month before.

The index is closely watched by the Fed, which raised interest rates by another 75 basis points on Wednesday, after increasing it by 75 basis points on June 15 as well – its steepest rate hike in 28 years.

Fed Chair Powell said after the conclusion of the central bank's latest meeting that another "unusually large" interest rate increase is possible in September.

However, he also adopted a dovish stance by saying: "It will likely be appropriate to slow the pace of [interest rate] increases."