In June, the personal consumption expenditures (PCE) index, a key inflation measure for the Federal Reserve, showed a slight easing in consumer prices.

Monthly prices rose by 0.1%, while annual inflation decreased to 2.5% from 2.6% in May. Both figures met economists’ expectations.

Core prices, excluding food and energy, climbed 0.2% monthly and 2.6% annually, slightly above estimates.

Despite a 0.2% monthly rise in service prices and a 0.1% increase in goods prices, consumer spending grew by 0.3%, though slightly less than the previous month’s increase.

Personal income rose by 0.2%, Fox Business has reported.

The data suggests inflation is inching towards the Fed’s 2% target, though a rate cut in the near future remains unlikely.

Written by B.C. Begley