The headline personal consumption expenditure (PCE) price index rose 1.6 percent year over year in June, a deceleration from a 1.7 percent pace in May, though higher than the 12-month average of 1.3 percent. On an annualized basis, headline PCE inflation was 2.6 percent, down from 3.2 percent the previous month, although again, higher than its 12-month trend of 1.6 percent. Core PCE price inflation, which excludes food and energy, rose 1.5 percent year over year in June, unchanged from May, which was the highest reading since February 2013. June's headline and core readings continued to suggest that inflation may be beginning to firm.
