Personal Spending and Income Show Steady Growth

In a recent report by the Bureau of Economic Analysis, it was revealed that personal consumption expenditures (PCE) in the United States increased by 0.3%, or $69.9 billion, in June. This growth mirrors the 0.3% rise in personal income, which added up to $71.4 billion on a monthly basis. Additionally, disposable personal income saw an increase of $61 billion, marking a 0.3% uptick.

Inflation Gauge Exceeds Expectations

The PCE price index, closely watched by the Federal Reserve as a key inflation indicator, recorded an annual increase of 2.6%, up from 2.3% in May and surpassing forecasts. Core PCE inflation, which excludes the volatile food and energy sectors, rose to 2.8% from 2.7% the previous month. Both the headline and core PCE price indexes experienced a 0.3% monthly increase, signaling persistent inflationary pressures.