Tuesday, June 10, 2025
LBNN
  • Business
  • Markets
  • Politics
  • Crypto
  • Finance
  • Energy
  • Technology
  • Taxes
  • Creator Economy
  • Wealth Management
  • Documentaries
No Result
View All Result
LBNN

US inflation cooled while consumer spending picked up in June

Simon Osuji by Simon Osuji
July 28, 2023
in Finance
0
US inflation cooled while consumer spending picked up in June
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Key US inflation measures continued to cool and consumer spending picked up in June, adding to momentum in the economy ahead of the third quarter.

The personal consumption expenditures price index rose 0.2% last month from May, Commerce Department data showed Friday. From a year ago, the measure that the Federal Reserve uses to track its 2% inflation goal increased 3% — the slowest pace in more than two years.

The so-called core PCE price index, which economists tend to see as a better gauge of inflation as it strips out the volatile food and energy components, also rose 0.2% from the prior month and was up 4.1% from June 2022.

Consumer spending, adjusted for inflation, increased 0.4% in June — the most since January.

Meanwhile, a quarterly measure of employment costs — also closely watched by the Fed — rose in the second quarter at the slowest pace in two years, according to separate government data out Friday.

While the annual inflation rate remains above the Fed’s target, the sharp slowdown in price and wage growth over the past year adds to hopes that the central bank can tame inflation without causing an economic downturn.

Metric Actual Est.
PCE price index (MoM) +0.2% +0.2%
Core PCE price index (MoM) +0.2% +0.2%
PCE price index (YoY) +3% +3%
Core PCE price index (YoY) +4.1% +4.2%
Real consumer spending (MoM) +0.4% +0.3%

A growing number of economists are rethinking their recession calls in the near-term or even growing confident that the US can skirt one altogether. As inflation cools, a resilient labour market is underpinning the economy.

After the Fed raised interest rates on Wednesday to the highest level in more than two decades, Chair Jerome Powell signaled the central bank’s tightening campaign may be close to an end. Policymakers will have access to multiple economic reports before their next meeting in September.

Another source of good news in the report was in a closely watched measure of services costs closely watched by Fed officials. The gauge that tracks services inflation excluding housing and energy rose 0.2% in June for a second month, according to Bloomberg calculations. The figure was up 4.1% from a year ago, the smallest advance since mid-2022.

A robust labour market continues to offer Americans the power to spend despite tighter financial conditions and still-rising prices. Wage gains have started to outpace inflation, easing the burden of higher costs.

On an inflation-adjusted basis, outlays for goods increased 0.9% — the largest advance since the start of the year and reflecting stronger demand for new trucks. Services spending ticked up 0.1%.

Real disposable income, the main support to consumer spending, rose 0.2%. Wages and salaries, unadjusted for price changes, increased 0.6% in the biggest advance since the start of the year. The saving rate fell to 4.3%.

© 2023 Bloomberg



Source link

Related posts

Afreximbank’s downgrade by Fitch ‘not based on reality’

Afreximbank’s downgrade by Fitch ‘not based on reality’

June 9, 2025
Uruguay’s dLocal Expands into Africa with Planned Acquisition of AZA Finance

Uruguay’s dLocal Expands into Africa with Planned Acquisition of AZA Finance

June 9, 2025
Previous Post

Bataan gov’t, nChain aim for the Philippines golden digital age: Watch the highlights here

Next Post

7 Ways to Recognise Deepfakes Online – IT News Africa

Next Post
7 Ways to Recognise Deepfakes Online – IT News Africa

7 Ways to Recognise Deepfakes Online - IT News Africa

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

New AI-driven tool streamlines experiments

New AI-driven tool streamlines experiments

2 years ago
Apple adds support for new languages across lock screen, keyboard and search on iOS 18

Apple adds support for new languages across lock screen, keyboard and search on iOS 18

11 months ago
13 Best Office Chairs (2023): Budget, Luxe, Cushions, Casters, and Mats

13 Best Office Chairs (2023): Budget, Luxe, Cushions, Casters, and Mats

2 years ago
Dogwifhat (WIF) to Reach $10 After Binance Listing?

Dogwifhat (WIF) to Reach $10 After Binance Listing?

1 year ago

POPULAR NEWS

  • Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    0 shares
    Share 0 Tweet 0
  • When Will SHIB Reach $1? Here’s What ChatGPT Says

    0 shares
    Share 0 Tweet 0
  • Matthew Slater, son of Jackson State great, happy to see HBCUs back at the forefront

    0 shares
    Share 0 Tweet 0
  • Dolly Varden Focuses on Adding Ounces the Remainder of 2023

    0 shares
    Share 0 Tweet 0
  • US Dollar Might Fall To 96-97 Range in March 2024

    0 shares
    Share 0 Tweet 0
  • Privacy Policy
  • Contact

© 2023 LBNN - All rights reserved.

No Result
View All Result
  • Home
  • Business
  • Politics
  • Markets
  • Crypto
  • Economics
    • Manufacturing
    • Real Estate
    • Infrastructure
  • Finance
  • Energy
  • Creator Economy
  • Wealth Management
  • Taxes
  • Telecoms
  • Military & Defense
  • Careers
  • Technology
  • Artificial Intelligence
  • Investigative journalism
  • Art & Culture
  • Documentaries
  • Quizzes
    • Enneagram quiz
  • Newsletters
    • LBNN Newsletter
    • Divergent Capitalist

© 2023 LBNN - All rights reserved.