US PCE inflation undershoots forecasts in June

US personal income and spending growth edged past forecasts in June, but price pressures were a tad more muted than anticipated by economists.

According to the Department of Commerce, personal income and spending grew at a month-on-month clip of 0.4% and 0.3%, respectively.

Consensus had pegged growth in both at 0.3%.

The price deflator for personal consumption expenditures meanwhile advanced at a pace of 0.1% on the month and by 1.4% on the year, with the latter down from the 1.5% pace observed in May, whereas economists had projected a print of 1.5%.

At the core level, which excludes the often typical categories of food and energy, the PCE price deflator was up by 0.2% versus the month before and by 1.6% year-on-year.

Economists forecasts had been calling for core PCE inflation to rise by 1.7% in June after running at 1.5% for May.