US PCE slows in June

The Federal Reserve’s preferred measure of inflation slowed slightly in June on a year-over-year basis, keeping the central bank on track to cut interest rates over the next few months.

Official data released Friday showed the PCE price index rose 0.1% in June on a monthly basis, in line with Wall Street expectations, and slowed on an annual basis to 2.5% from 2.6%.

The core index, which excludes energy and food prices, rose 0.2% from May, also in line with expectations, and slowed on an annual basis to 2.6%.