While the signs of cooling in inflation indicators in the USA continued, consumer expenditures recovered in June, indicating that economic growth gained momentum. Personal consumption expenditures inflation, which is one of the inflation indicators followed by the Fed, was the lowest annual increase since March 2021 with 3 percent.
While the softening in critical inflation indicators continued in the USA, consumer expenditures increased in June, indicating that economic growth gained momentum before the third quarter.
According to data released by the Ministry of Commerce on Friday, the personal consumption expenditures price index, an inflation data tracked by the Fed, increased by 0.2 percent in June.
While the same index increased by 3 percent annually, this was the lowest level since March 2021.
The index of personal consumption expenditures, which economists see as a better indicator of inflation due to the exclusion of variable food and energy components, increased by 0.2 percent compared to the previous month and by 4.1 percent compared to June 2022.
The annual increase was the lowest since September 2021. Personal spending rose 0.5% in June, above expectations of 0.4%.