The US Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, cooled by 0.1% in June 2026, matching market expectations.
Despite the cooling, economists warn that rising energy costs linked to the ongoing Middle East conflict could reverse these gains in the coming months.
Consumer spending rose by 0.3% during the same period, suggesting that while inflation is moderating, the economy remains sensitive to geopolitical supply chain disruptions.