By Casey Harper | The Center Square
(The Center Square) – Newly released federal inflation data shows that inflation ticked up in June.
The U.S. Bureau of Economic Analysis Friday released its Personal Consumption Expenditure, a favorite inflation marker for the Federal Reserve, which showed a 0.2% increase.
“Excluding food and energy, the PCE price index also increased 0.2 percent…. Real [disposable personal income] increased 0.2 percent in June and real PCE increased 0.4 percent; goods increased 0.9 percent and services increased 0.1 percent…”
The figures were much lower than the elevated inflation earlier in the Biden administration but still above experts’ expectations.
“Core PCE inflation came in very low (albeit a touch above expectations), the second lowest pace of the inflationary period,” Jason Furman, Harvard economist and former Obama administration official, wrote on Twitter.
The PCE rose 3% in since last June.
“Prices for goods decreased 0.6 percent and prices for services increased 4.9 percent,” BEA said. “Food prices increased 4.6 percent and energy prices decreased 18.9 percent. Excluding food and energy, the PCE price index increased 4.1 percent from one year ago.”
The data comes after the U.S. Federal Reserve earlier this week raised the federal funds rate to curb inflation. The new rate is the highest in in over 20 years.
