Data released just moments ago from the U.S. Bureau of Economic Analysis showed that U.S. personal income rose by $71.4 billion in June, up 0.3% from a 0.4% decline in May. The Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE), rose by 0.3% to $69.9 billion, up from a 0.2% reading in May. The PCE rose by 2.6% year-over-year, compared to 2.4% in May (expectations: 2.4%).
The core CPI, which excludes food and energy prices and is closely monitored by the Federal Reserve, grew by 0.3% in April, up from 0.2% in May, and rose to 2.8% year-over-year, up from 2.7% in May, exceeding expectations of 2.7% growth.