US: Annual core PCE Price Index arrives at 1.6% as expected

According to the monthly data published by the U.S. Bureau of Economic Analysis, the core Personal Consumption Expenditures Price Index, the Federal Reserve preferred gauge of inflation, rose 1.6% in May to match the previous reading and the market expectation.

On a monthly basis, the core PCE Price Index came in at +0.2%. Further details of the report showed that personal spending in the same period increased by 0.4% on a monthly basis to fall in line with analysts' estimate and personal income rose by 0.5% to beat the market forecast of 0.3%.