Marketplace · Thursday, July 30, 2026
The US personal consumption expenditures (PCE) price index for June showed an annual rate of 3.7%, down from 4.1% in May, offering some relief. However, the Federal Reserve's preferred 'sticky price' CPI index remained at 2.8%, indicating that persistent inflation in areas like housing and dining out may take longer to abate. Economists caution that while underlying inflation is trending downwards, its pace may not be fast enough for the Federal Reserve's comfort.
“The June reading came in at an annual rate of 3.7%, which is down from what we saw in May at 4.1%. Sounds encouraging.”
“That tells us that to a large degree, it's still going to take time for inflation to get back to 2%.”
“I do think that underlying inflation is still gradually downwards. I think it's just a question of whether it comes down fast enough for Fed officials to be comfortable about.”