I guess it's because it was only as bad as everyone expected.  From Reuters:

Prices on U.S. core consumer goods rose mildly in May, while consumers' inflation worries eased and their economic outlook improved in June, according to private and government data released on Friday.

The core price index on personal consumption expenditures rose 0.2 percent in May, matching analysts' forecast. The core PCE gauge, which excludes food and energy prices, was up 2.1 percent from a year earlier in May, matching April's advance, the Commerce Department said.

The Federal Reserve's preferred inflation measure suggested that core inflation remains contained...

The Federal Reserve's preferred measure?  Pretty broad statement, that.  If what was me, I might want to see the data cut a few more ways.  I might want to see, for example, the "trimmed mean" calculations from the Federal Reserve Bank of Dallas, or "Market-Based PCE" statistics:

   

Pce_table

   

OK.  I'll call the May report a draw. Unless you really want to attach yourself to one measure or another, there isn't much evidence to support the view that underlying inflation trend is increasing -- or decreasing.  And this picture, showing the distribution of price changes is not a lot more comforting than what we have been observing in the CPI:

   

Pce_distribution

   

The majority of prices in the PCE market basket, when weighted by expenditure share, are still increasing at annual rates in excess of 3 percent.  That can't be good.

UPDATE: Calculated Risk notes that the Personal Income and Outlays report that contains the PCE data also shows that the personal "savings rate continued its downward trend."  Mark Thoma welcomes the newest Federal Reserve governor with the PCE report. Both The Skeptical Speculator and the Nattering Naybob summarize the economic news of the last several days, and the latter warns:

Investors need to have a reality check & wake up call. When the market rallies +200 points because the Fed says the economy is weakening, there's big trouble in store. This knee jerk rally is a head fake, in the near term, the markets are headed further South.