Core PCE inflation in the United States rose in June, adding another variable to the prospect of a Fed rate cut in September.

In June, inflation data in the United States slightly exceeded expectations, adding another variable to the timeline for the Federal Reserve's interest rate cuts. The core PCE price index, favored by the Federal Reserve, rose by 0.3% on a monthly basis and by 2.8% on a yearly basis, slightly higher than market expectations of 0.29% and 2.7%. The overall PCE index, including food and energy, also rose by 0.3% on a monthly basis and by 2.6% on a yearly basis, higher than market expectations of 0.23% and 2.5%. This better-than-expected inflation report complicates the Federal Reserve's path for interest rate cuts. Policymakers had previously emphasized the need to see more evidence of inflation consistently returning to the 2% target, and the latest data may delay this process.