Inflation is inching closer toward the Fed’s 2% target
The Personal Consumption Expenditures price index — a closely watched inflation gauge that the Federal Reserve uses for its 2% target — slowed to 2.5% for the 12 months ended in June from 2.6% the month before, according to Commerce Department data released Friday.
Economists had projected the annual increase would slow to 2.5%, according to FactSet consensus estimates.
This story is developing and will be updated.
The slowdown in the inflation rate might impact various business sectors, potentially affecting overall economic growth. Due to the decrease in the PCE price index, some companies might need to adjust their pricing strategies to maintain profitability.
