The US PCE price index rose by 0.3% month-over-month in June 2025, the largest increase in four months, following an upwardly revised 0.2% gain in May, and in line with expectations. Prices for goods were up 0.4%, above 0.1% in May and prices for services rose 0.2%, the same as in the previous month. The core PCE index, which excludes food and energy, went up 0.3%, marking its strongest monthly gain in four months, following a 0.2% increase in May, and also matching forecasts. Separately, prices for food increased 0.3%, after a 0.2% gain in May while prices for energy goods and services rose 0.9%, rebounding from a 1% drop. On an annual basis, headline PCE inflation accelerated for the second consecutive month, reaching 2.6% in June from an upwardly revised 2.4% in May and above expectations of 2.5%. Core PCE inflation held steady at 2.8%, but the figure for May was revised higher to 2.8% from 2.7%. The PCE index is the Federal Reserve’s preferred measure of inflation.