Price Hikes Accelerated in June: Fed

The Federal Reserve’s preferred measure of inflation showed that price increases accelerated in June, keeping inflation above the Fed’s 2% target, Yahoo Finance reported.

Core prices rose 2.8%, slightly above the 2.7% forecast and in line with the revised May reading.

The “core” Personal Consumption Expenditures (PCE) index—which excludes volatile food and energy prices and is closely tracked by the Fed—rose 0.3% from the previous month, matching economists’ expectations and exceeding May’s 0.2% increase, according to reporting by Grace O'Donnell and Josh Schafer.

On a year-over-year basis, core prices rose 2.8%, slightly above the 2.7% forecast and in line with the revised May reading, which was bumped up from an initial estimate of 2.7%.

The data release came just one day after the Fed opted to keep interest rates unchanged at its July meeting.

Fed Chair Jerome Powell emphasized that it remains “early days” for understanding the full inflationary impact of tariffs and warned that “a long way to go” still lies ahead before the economic effects are fully evident.