Fed’s Preferred Inflation Gauge Rises Higher Than Forecasts

The personal consumption expenditure price index closes the door on June inflation data.

People shop at a store in Elkridge, Md., on July 11, 2025. Madalina Kilroy/The Epoch Times

The Federal Reserve’s preferred inflation measure came in above economists’ expectations, potentially fueling concerns that tariffs are seeping into the economy.

In June, inflation in the annual personal consumption expenditure (PCE) price index rose to 2.6 percent from 2.4 percent in May, the Bureau of Economic Analysis reported. This is the highest level since February.