Import sensitive goods categories, such as furnishings and durable household equipment, saw large jumps relative to May May and April headline and core PCE readings were also revised up, in line with the GDP deflator reading released yesterday The June PCE inflation numbers vindicate the Fed’s majority decision to hold rates steady in July.

Inflation in the Federal Reserve’s preferred measurement ticked up to a 2.6-percent annual increase in June from 2.3 percent as cost increases from President Trump’s tariffs make their way into the economy.