US inflation slows in June, but reversal likely amid Middle East conflict
SPY•Consumer spending and incomes slow
Consumer spending, which accounts for more than two-thirds of economic activity, rose 0.3% in June after surging 0.9% in May. When adjusted for inflation, consumer spending increased 0.4% in June, matching the rise in May.
Personal income rose 0.2% after shooting up 0.7% in May. Income at the disposal of households after accounting for inflation rose 0.3% last month. The saving rate fell to 2.7%, the lowest level since June 2022, from 2.8% in May.
Inflation slows in June as oil prices ease
WASHINGTON, July 30 (Reuters) - U.S. inflation slowed in June, but the easing is likely to be temporary as renewed hostilities in the Middle East raise oil prices.
The Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through June after advancing by an unrevised 4.1% in May, which was the largest gain since April 2023, the Commerce Department's Bureau of Economic Analysis said on Thursday. The increase in PCE inflation was in line with economists' expectations.
