Key Takeaways Inflation accelerated in June according to the PCE price index. Prices rose 2.6% over the year, higher than the 2.4% annual price increase in May."Core" PCE prices rose 2.8%, the same as in May,

The Federal Reserve’s preferred measure of inflation edged higher in June, the Commerce Department reported on Thursday. Consumer prices ticked up 0.3% for the month and 2.6% year over year, according to the government’s Personal Consumption Expenditures price index.

Import sensitive goods categories, such as furnishings and durable household equipment, saw large jumps relative to May May and April headline and core PCE readings were also revised up, in line with the GDP deflator reading released yesterday The June PCE inflation numbers vindicate the Fed’s majority decision to hold rates steady in July.