US Fed's preferred inflation gauge ticks up more than expected
The personal consumption expenditures (PCE) price index climbed 2.6 per cent in June from a year ago, said the Commerce Department in a report.
This was a pick-up from May's 2.4 per cent figure, and above the 2.5 per cent median forecast expected from economists surveyed by Dow Jones Newswires and The Wall Street Journal.
Excluding the volatile food and energy sectors, the PCE price index held steady at 2.8 per cent last month, data showed.
The figures came a day after the US central bank decided to hold off further interest rate cuts for a fifth consecutive policy meeting, citing somewhat elevated inflation and heightened uncertainty.
Trump imposed wide-ranging tariffs on most trading partners after returning to the White House in January, alongside steeper rates on imports of steel, aluminum and autos.
These duties, so far, have had a limited effect on inflation but Fed policymakers are waiting to see how they impact consumer prices via data from the summer months — given that they take time to filter through.
The latest data could give the Fed further reason to stand pat on interest rates, as officials keep an eye on inflation, as long as the jobs market continues showing resilience.
On Friday, Trump is set to implement a fresh set of tariff rates on dozens of economies, a move that analysts warn could further impact costs.
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