Washington (US), July 31: U.S. personal consumption expenditures (PCE), the Federal Reserve's preferred inflation measure, soared 6.8 percent in June over the past year, the Commerce Department reported on Friday.
The latest figure, the highest in four decades, came after the measure in May rose 6.3 percent year-on-year.
The PCE gauge, which takes into account how consumers change their behavior in light of higher prices, is another stark reminder that inflation has been persistently high.
PCE prices grew by 1.0 percent in June from the previous month, after a 0.6-percent increase in May, according to estimates released by the department's Bureau of Economic Analysis.
The so-called core PCE price index, which strips out volatile food and energy prices, rose 4.8 percent from a year ago, still well above the Fed's inflation target of 2 percent.
PCE grew by 1.1 percent in June from the previous month. The measure ticked up by 0.1 percent after adjusting for inflation.
Personal income grew 0.6 percent in the month from the previous month, and disposable personal income increased 0.7 percent, the report showed.
The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points, the second in a row of that magnitude, as elevated inflation showed no clear sign of easing.
The latest move came after the Fed raised rates by 75 basis points at its June meeting, the sharpest rate hike since 1994. The Fed raised rates by 25 basis points in March and then by 50 basis points in May.
"While another unusually large increase could be appropriate at our next meeting, that is a decision that will depend on the data we get between now and then," Fed Chair Jerome Powell said Wednesday afternoon at a press conference.
Source: Xinhua
