US Inflation Accelerates, Spending Growth Slows
The Federal Reserve’s preferred inflation measure exhibited signs of acceleration last month even as personal spending growth slowed, providing more evidence of a “stagflation-lite” situation in the US economy. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index—which excludes food and energy costs—rising 0.3 percent in June from the prior month. On a year-over-year basis, core prices rose 2.8 percent, slightly narrowing the gap between the Fed Funds rate and underlying inflation. The overall personal consumption expenditures index also rose 0.3 percent relative to the prior month, and was up 2.6 percent...