PCE prices are expected to rise 0.1%

The US personal consumption expenditure price index is expected to rise 0.1% from the previous month in 2024/6, continuing to remain flat in May.

The core index, which excludes food and energy, is also expected to rise 0.1%, the same as in May.

Meanwhile, the annual PCE rate is expected to slow from 2.6% to 2.5% for 2 consecutive months.

Similarly, the annual core PCE inflation rate is forecast to fall from 2.6% to 2.5%, the lowest level since March 2021.

According to the Federal Reserve's latest economic forecast released in June, this year's annual PCE inflation rate is predicted to be 2.6% and the core rate is 2.8%.

Source: US Bureau of Economic Analysis